Ann: Covata Announces Major Acquisition, page-7

' if the option is exercised Covata will retain a global perpetual royalty-free licence to the core IP underpinning the existing SafeShare product'

Depending on how you view it the divestiture of Safeshare, the comment above suggests that the underlying IP is potentially valuable to Covata which could be incorporated into existing products developed by Dataglobal or Cipherpoint without incurring any ongoing licensing costs. 

There are also Mac Telecom's and the Government use of Sigbox that need to be taken into consideration.  The divestiture would provide the current developers of Safeshare with continuing employment, as the way I read the announcement, the Australian office will be trimmed down to management and possibly sales, with development moving to Germany.  It will also give the Gov't peace of mind knowing that Safeshare is still owned, developed and supported by a local company.

Without the Dataglobal deal, Covata faces an uncertain future due to ongoing Capital requirements, access to talent required to develop products which in turn affects speed to market, building a sales force, running proof of concept trials in an attempt at cracking the lucrative US and Euro markets in a highly competitive space, whereas Dataglobal is past that stage and has products the market is willing to pay for.

In my way of thinking this is the best outcome for shareholders if the Dataglobal financials are in good shape.