Semtek Innovative Solutions

Established in 1999 by Clay von Mueller, Semtek Innovative Solutions carved a niche in secure card data capture and magnetics technology. Based in San Diego, the firm operated primarily under an Original Equipment Manufacturer (OEM) model, supplying critical components to major hardware vendors globally. Its clientele included leading providers of point-of-sale (POS) terminals, ruggedized wireless devices, and government entities.

The company's operations were structured into two main business units: Data Capture and Security Solutions. The Data Capture division focused on enabling handheld and wireless devices, such as cell phones and data collection terminals, to securely accept card payments and read data. This was achieved by providing specialized, small form-factor card reader components and interfaces compatible with magnetic stripes, smart cards, RFID, and biometrics.

Concurrently, the Security Solutions business addressed the vulnerabilities inherent in magnetic-stripe-based transactions. This unit developed advanced data encryption and card authentication technologies. Key products included the Cipher ModuleTM and Hercules ModuleTM, which, along with their network-side appliances, offered a robust framework for securing payment processing for merchants, processors, and issuers.

Throughout its history, Semtek raised a total of $24.3 million in funding over two rounds, with notable investors including Venrock and RRE Ventures. The company's trajectory culminated in its acquisition by Verifone on September 8, 2010, for $18 million, marking a significant milestone in its journey.

Keywords: data capture, payment security, OEM components, magnetic stripe technology, POS terminals, data encryption, card authentication, smart card readers, RFID technology, Verifone acquisition