Amsterdam-based Gemalto has moved to improve and expand its data security protection offerings through the acquisition of Maryland-based SafeNet.
Those improvements will not come cheap as Gemalto has agreed to pay $890 million for 100 percent of the share capital of SafeNet from Vector Capital. The deal will close in the fourth quarter and will be funded with cash and long-term debt facilities.
“The combination of our portfolios will allow customers to have access to world’s leading security products for mobile and cloud, delivering best-in-class protection of data and identities,” Prakash Panjwani, the SafeNet president and chief executive, said in a news release.
SafeNet brings with it into the Gemalto deal a customer portfolio that already includes Bank of America, Cisco, Dell, Hewlett-Packard, Kaiser Permanente, Netflix and Starbucks.
Gemalto is currently located in 44 countries with over 10,000 employees and posted revenue of around $3.2 billion last year.
“The opportunity to acquire SafeNet has come at exactly the right time, as we have just entered into our new multi-year development plan and there is a perfect fit between Gemalto’s “security at the edge” and SafeNet’s “security at the core” capabilities. This will enable us to further accelerate the deployment of strong security solutions in the Enterprise sector, and expand our technologies and growth opportunities in protecting online access. Overall, our global leadership in digital security will be reinforced”, said Olivier Piou, Gemalto CEO.
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The deal is expected to close in the last quarter of 2014.
