Internet security specialist Baltimore Technologies has sold its software encryption subsidiary OmniRoot for €2.8 million as it continues its strategy of non-core asset disposals.

The division has been acquired by beTRUSTed, a technology security firm with operations in the US and Britain. The sale follows the disposal in July of the American management services and authorisation businesses of Baltimore for nearly €14 million.

Baltimore, the one-time internet high-flier that has suffered a collapse in share price over recent years, failed to attract a buyer when it put itself on the market in early summer. It acquired OmniRoot as part of its €165 million takeover of Cybertrust in March 2000. Baltimore said yesterday's sale was a good deal for shareholders and customers.

Mr Bijan Khezri, chief executive, said: "Further to the recent sale of our managed services operation to beTRUSTed, this transaction represents a further step in maximising value for our shareholders and customers. Through its global managed services operation, we believe beTRUSTed is uniquely positioned to effectively capitalise on the potential of OmniRoot in the marketplace."

Mr John Garvey, chief executive of beTRUSTed: "This acquisition is a significant step in strengthening beTRUSTed's offerings, broadening our ability to offer new services to both existing and new clients. Purchasing Baltimore's OmniRoot business is an important strategic step in our mission to become the leading global trust services provider. We offer existing and future customers a stable, high-quality platform to implement their security and trust strategies."

Based on unaudited management information, OmniRoot generated revenues of €810,000 and profits before interest and tax of about €720,000. Net assets of OmniRoot are estimated at €50,000. Baltimore employs 100 in the Republic.