Gemalto has announced that it is purchasing US-based data protection specialist SafeNet from PE firm Vector Capital for USD890 million.
The move is designed to boost profits and reach for Gemalto, which has signed an agreement to buy all SafeNet shares from Vector Capital. The deal will expand Gemalto’s customer base to major US clients and strengthen its data protection offering at a time when cybersecurity is a growing concern for both private corporations and government agencies.
Gemalto expects the deal to close in the fourth quarter and that it will allow the company to beat by around 10 per cent its 2017 target for profit from operations of 600 million euros ($801.60 million).
Olivier Piou, Gemalto CEO, commented: “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”.
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