Data I/O Corporation has announced that it has signed a non-binding Letter of Intent (LOI) to acquire the embedded software security intellectual property and related assets of IAR. The proposed acquisition expands the companies' existing partnership and is intended to strengthen Data I/O's secure provisioning capabilities for embedded systems, semiconductor manufacturing, and connected devices.
The proposed acquisition enables Data I/O to bring in-house the core technologies behind its existing collaboration with IAR. The transaction includes Embedded Trust, Secure Deploy, the eSecIP toolchain, certificate authority infrastructure, provisioning technologies, intellectual property, software, engineering assets, manufacturing equipment, and related certifications.
According to Data I/O, full ownership of these technologies will allow the company to directly manage product development, security provisioning roadmaps, device support, and software releases while extending security capabilities further into the embedded design process.
The acquisition aligns with Data I/O's strategy of integrating security into the earliest stages of embedded product development rather than adding it later during manufacturing.
The company believes combining embedded software security with its programming and provisioning platforms will enable engineers to design products with built-in security while simplifying secure provisioning throughout production.
The announcement also comes as manufacturers prepare for evolving cybersecurity regulations, including the European Union's Cyber Resilience Act, which introduces mandatory security-by-design requirements, vulnerability management, Software Bill of Materials (SBOM) reporting, and lifecycle security obligations for connected products sold within the European Union.
“This acquisition is a natural next step in our evolution of becoming a highly valued supplier for the semiconductor supply chain. Our February collaboration showed how well IAR’s embedded software security technology fits with our programming and provisioning platforms. As we advance our future provisioning platform the acquisition of the IP, HSM design gives Data I/O the ability to design Security provisioning into our core platform as opposed having to integrate multiple third-party products. Secure provisioning uses the same infrastructure as Data provisioning, algorithm-based delivery system. Our Data provisioning platform is a natural extension for secure provisioning. The acquisition just makes sense for our roadmap and the ability to move faster for our customers, while our commercial partnership with IAR continues, giving customers the same integrated path from embedded design through high-volume, secure manufacturing. Together with our platform and Programming-as-a-Service strategy, this will give Data I/O a complete, differentiated security provisioning offering with a strong regulatory tailwind ahead of the EU Cyber Resilience Act.” William Wentworth, President and CEO of Data I/O Corporation
Although Data I/O intends to acquire IAR's embedded software security assets, both companies confirmed that their commercial collaboration will remain unchanged.
Their February 2026 partnership integrated IAR's embedded security technologies with Data I/O's PSV programming systems to create an end-to-end secure provisioning workflow spanning embedded software development through manufacturing. The companies stated that this integrated offering will continue to serve OEMs worldwide following completion of the transaction.
“We’re pleased to see our partner Data I/O acquire IAR’s embedded software security assets. IAR acquired the portfolio in 2018 to bring embedded software security into our offering, and many of our customers depend on this technology today. This transaction secures the future of the technology and continuity for customers, with a partner well positioned to invest in it and grow its installed base, while we continue to focus and invest on what is core to IAR and Qt Group. Customers get continuity of the products they rely on today, backed by a partner fully dedicated to their long-term roadmap.” Karin Schreil, Senior Vice President of BU IAR at Qt Group
Data I/O expects the acquisition to strengthen its position within the semiconductor supply chain by combining embedded software security with secure device programming and provisioning technologies.
As cybersecurity regulations become more stringent across global markets, organizations increasingly require integrated security solutions that span software development, manufacturing, deployment, and lifecycle management. The proposed acquisition reflects Data I/O's strategy of expanding its security offerings while supporting customers preparing for future compliance requirements.
About IAR
IAR delivers world-leading software and services for embedded development, empowering manufacturing companies worldwide to create high-quality products. Our solutions support developers in ensuring reliability and efficiency throughout the development process across the automotive, industrial automation, IoT, and medtech industries.
Since 2025, IAR is part of Qt Group (Nasdaq Helsinki: QTCOM), a global software company, trusted by industry leaders and over 1.5 million developers worldwide to create applications and smart devices that users love. IAR operates as a business unit, strengthening its ability to deliver comprehensive solutions for embedded systems. To learn more, visit www.iar.com and www.qt.io.
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