Microsoft to Acquire Mobile Security Company

— October 06, 2012

Microsoft Corp. and PhoneFactor Inc. announced that Microsoft has acquired PhoneFactor, a multifactor authentication (MFA) solutions company.

“The acquisition of PhoneFactor will help Microsoft bring effective and easy-to-use multifactor authentication to our cloud services and on-premises applications,” said Bharat Shah, corporate vice president, Server and Tools Division for Microsoft. “In addition, PhoneFactor’s solutions will help Microsoft customers, partners and developers enhance the security of almost any authentication scenario.”

Founded in 2001, PhoneFactor is trusted by hundreds of leading organizations to help secure millions of logins and transactions each year. By leveraging a device nearly every user already has — a phone — PhoneFactor enables rapid deployment of MFA across a wide range of applications. It already works with many Microsoft products and services, including Outlook Web Access and Internet Information Services, and interoperates with Active Directory.

Terms of the deal were not disclosed.

Timothy Sutton, CEO of PhoneFactor wrote in his blog, "When we initially launched PhoneFactor, we had a vision to deliver strong authentication as a seamless part of almost every process where an individual needs to access confidential or proprietary data. We wanted to solve this problem broadly, whether it’s from a server on-premises or in the cloud, or whether the individual is using a PC, smartphone  or tablet. With Microsoft’s product breadth and distribution reach, it will be possible to bring the benefits of PhoneFactor to a broader set of customers, partners and developers than we could as a stand-alone company."

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