Kramer Levin Client Aladdin Announces Merger

Kramer Levin client Aladdin Knowledge Systems Ltd. announced on January 12, 2009 that it has entered into a definitive merger agreement to be acquired by an investor group lead by Vector Capital, a leading private equity firm specializing in the technology industry, in a transaction valued at approximately $160 million. This is the end result of a takeover battle that began in August 2008 and involved a proxy contest, an aborted private equity investment (which filed to close on the day Lehman Brothers collapsed) and finally a negotiated merger agreement with the activist shareholder which had begun this process.

Aladdin Knowledge Systems is an information security leader with offices in 15 countries, a worldwide network of channel partners, and numerous awards for innovation , whose shares are traded on Nasdaq and the Tel Aviv Stock Exchange.

Vector Capital is a leading private equity firm specializing in spinouts, buyouts and recapitalizations of established technology businesses.

Richard H. Gilden, Ernest S. Wechsler, Robert M. Heller, Jeffrey Taylor, and Stephanie N. Restifo worked on the deal.