WISeKey Announces a Pivotal Shift in Strategic Direction by Adopting a Holding Company Structure

WISeKey Announces a Pivotal Shift in Strategic Direction by Adopting a Holding Company Structure

Four operational subsidiaries each focused on a specific aspect of WISeKey’s expansive technology portfolio.

WISeKey International Holding Ltd, a global leader in cybersecurity, digital identity, and Internet of Things (IoT) solutions, announced a pivotal shift in strategic direction by adopting a holding company structure of several operational subsidiaries, each dedicated to a specific aspect of WISeKey’s expansive technology portfolio.

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The company’s diverse spectrum of technologies currently includes four subsidiaries:

• SEALSQ Corp (Nasdaq: LAES): focuses on developing and selling semiconductors, PKI and post-quantum technology hardware and software products.
• WISeKey SA: focuses on RoT and PKI solutions to provide secure authentication and identification, in both physical and virtual environments, for the IoT, Blockchain, and AI.
• WISeSat AG: focuses on space technology aiming to securely connect assets via satellite communication using picosatellites, a security-IoT hardened nanosatellite designed to further drive down satellite costs for IoT applications.
• WISe.ART Corp: focuses on trusted blockchain NFT and through its WISe.ART marketplace which provides a secure platform where NFT buyers and sellers can easily connect their crypto wallets to instantly purchase or list their NFTs for sale.

Each operational subsidiary enriches WISeKey’s overarching mission of securing the internet, while focusing on their unique areas of R&D and expertise. Furthermore, each subsidiary’s technologies are seamlessly integrated into the comprehensive WISeKey platform.

Carlos Moreira, the CEO of WISeKey noted, “Embracing this new role as a holding company signifies WISeKey’s unwavering commitment to delivering the most comprehensive and effective cybersecurity solutions to its customers. By diversifying our operations, we ensure we are well-equipped to navigate the evolving cybersecurity landscape while staying true to our core mission of securing the Internet. The recent successful listing of our subsidiary SEALSQ is a testament to the viability of this strategy, and the growth that can be secured through it.”

Under this new strategy, WISeKey’s subsidiary, SEALSQ, recently listed its ordinary shares on the Nasdaq Global Market – trading under the symbol “LAES” as of May 24, 2023. Alongside the listing, WISeKey allocated 20% of SEALSQ’s outstanding ordinary shares to holders of WISeKey Class B Shares, WISeKey ADSs, and WISeKey Class A Shares. Post-listing, WISeKey retained 80% ownership of SEALSQ.

SEALSQ recently announced the closing of an initial $10.0 million tranche of total possible $20.0 million private placement. As announced, SEALSQ plans to use the net proceeds from this financing to fund:

• Enhancement of production facilities in the U.S. and France by investing in advanced manufacturing and testing equipment aiming to improve efficiency and reduce semiconductors production localization risks.
• Additional investments towards the development of a new generation of quantum-ready semiconductors designed to meet the computing demands of the future and offer superior processing power and energy efficiency.

Each subsidiary under WISeKey’s holding company structure will maintain its revenue stream and profitability targets, enabling a concentrated focus on core strengths and market opportunities. Each subsidiary is in a varying stage of maturity, with SEALSQ independently listing on the NASDAQ, while others remain in the startup phase. Despite their diverse development stages, all subsidiaries align with the broader mission of the holding company, which retains majority ownership and provides managed financial services, ensuring smooth operations and superior cybersecurity solutions for customers.

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Looking forward, WISeKey intends to gradually IPO each independent company upon reaching maturity. This strategy allows subsidiaries the autonomy to operate independently, while leveraging the resources and support of the parent company. The resulting diversified business structure bolsters WISeKey’s potential for success in the dynamic cybersecurity market.

WISeKey’s status as a pioneer in the cybersecurity and digital identification sectors positions it to reap significant benefits from its affiliates, grappling with the challenges of the Fourth Industrial Revolution (4IR). Its multi-sector involvement presents multiple avenues for sustained growth and continued relevance:

• Diversification: Engaging with a variety of sectors – from digital identity to semiconductors, quantum computing, blockchain technology, space satellites, and NFT platforms – allows WISeKey to broaden its operational scope and mitigate risk. This diversified approach is likely to secure multiple revenue streams and lessen the company’s overall risk exposure.
• Integration: The 4IR is marked by the merging of different technologies. For instance, the integration of quantum computing significantly boosts the security of blockchain systems, and digital identities can be authenticated using NFTs. By collaborating across these sectors, WISeKey can provide integrated solutions that deliver added value to its clients.
• Innovation: The challenges of the 4IR necessitate innovative solutions. WISeKey’s alliances with diverse companies expose it to a vast range of novel ideas, techniques, and technologies, keeping it at the vanguard of digital transformation.
• Human-Centric Approach: WISeKey’s vision of human-centric digital transformation aligns perfectly with the objectives of the 4IR. Emerging technologies, like digital identities and blockchain, can empower individuals, granting them control over their personal data and digital assets.
• Networking and Partnerships: Collaborations with various companies could open doors to new opportunities for networking and partnerships. These connections can lead to cooperative projects, aiding WISeKey’s expansion and the enhancement of its offerings.
• Expertise and Reputation: WISeKey’s enduring reputation and proficiency in digital transformation give it a competitive edge. The company’s profound knowledge and experience in cybersecurity and digital identity make it a preferred solution provider in the 4IR, thereby bolstering its market standing.
• Future-Proofing: By remaining engaged with the cutting-edge technologies of the 4IR, WISeKey effectively future-proofs its business. As digital transformation continues to accelerate, the demand for services in these sectors will inevitably grow, securing WISeKey’s relevance and expansion in the future.

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