Baltimore may float Japanese subsidiary

Baltimore Technologies may consider an eventual stock market flotation of its Japanese subsidiary, Baltimore Japan, following the sale of a 7 per cent stake to local investors for $18 million (€19.5 million).

According to Mr Paddy Holohan, Baltimore executive vice-president of marketing, a public listing of the Japanese arm may be an option for Baltimore in the future, but he added no decisions had been taken.

The latest investors include Softbank Networks, Tokyo Electric Power Company and CTC. Mr Holohan says local investor interest in the company will strengthen its position in the Japanese market.

Baltimore specialises in the provision of information security software and this week it also announced an agreement with Japan Certification Services, a national certification authority jointly owned by Hitachi, Fujitsu and NEC.

"The way you do business in Japan is through local business, where it's all about customers, partners, investor partners and employees," Mr Holohan says.

Baltimore's Japanese operations will begin trading as Baltimore Japan from May 1st. The official company name change will take effect following Baltimore's acquisition of a 72.5 per cent stake in its Japanese sales agency, NSJ, for 2.67 billion yen (€25.4 million) last month.

Following the sale, Baltimore's shareholding has been reduced to 69 per cent. Other shareholders in Baltimore Japan include NSJ employees, senior management and investor companies.

Baltimore has also announced the resignation of company vice-president of corporate development Mr Matthew Bowcock. He joined the firm after Baltimore acquired the company he founded, Security Domain, in 1998.

Following the buyout Mr Bowcock was locked into a two-year contract which has now expired. His resignation will take effect immediately and it is understood Mr Bowcock is leaving to pursue personal and business interests.