Polaris Software Labs Ltd has entered the cloud computing space through strategic investment in IdenTrust, a US-based provider of ‘Trusted Identity Solutions.'

A definitive agreement between the parties will enable Polaris to make a strategic investment for 85.3 per cent equity in IdenTrust for $20 million (Rs 90 crore), Mr Arun Jain, Chairman and CEO, Polaris, told newspersons on a conference call. Revenue guidance due to the acquisition during the year will be nearly $11 million, he said.

While Polaris will have a majority in the shareholding pattern, Zions Bancorporation, among premier financial services companies in the US, will be a minority equity holder in IdenTrust.

IdenTrust, which has 62 employees, is the third major acquisition that the Chennai-based software company has made in the last 18 months. Polaris acquired IndigoTX, a Software-as-a-Service (SaaS) company, in March 2010 and LaserSoft in October 2009. With increasing dependency on the Internet, security solutions that incorporate identity management are a key element in any cloud offering, said Mr Jain. IdenTrust enables organisations to manage the risks associated with identity authentication. Its solution protects $7 trillion worth online payments every year, said a company official. With IdenTrust PKI identities, applications and transactions are protected against cyber attacks through mutual authentication, digital signatures and encryption, Ms Karen J. Wendel, Chief Executive Officer, IdenTrust, said in the conference call.

IdenTrust was founded in 1999 by a group of financial institutions that included Citigroup, Bank of America, Chase, Barclays, HSBC, and Deutsche. Its shareholders include 20 banks, and the company brings with it an existing customer base of ten of the world's largest banks.

The stock price of Polaris on the Bombay Stock Exchange closed at Rs 208.50, up by Rs 2.

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