Global leader in IT security Gemalto has signed a definitive agreement to take 100 percent of SafeNet’s share capital from Vector Capital for $890m on a cash free basis.
Headquartered in Maryland, United States SafeNet is a global leader in software monetization and data protection. Currently, it operates in 27 countries and maintains the position as the biggest dedicated digital information security companies in the world. The company is believed to control the access to, protect and manage the world’s most sensitive data and high value software applications.
According to Gemalto, some 400 million digital data records have either been lost or stolen in 2014 alone, prompting the need for effective protection of data.
With the new acquisition, Gemalto and SafeNet combine technologies, human resources and services to secure a complete infrastructure: network, users, data, software, at the core and at the edge.
SafeNet offers a wide portfolio of data protection solutions including encryption technologies for civilian applications, HSM1 advanced cryptographic key management systems, sophisticated software license management and monetization solutions as well as authentication servers and authentication as a service.
Once the acquisition is completed, SafeNet will significantly reinforce Gemalto’s Identity and Access Management business. It will become part of Gemalto’s Payment & Identity segment, and its Platforms & Services activity, which account respectively for €1,329 million and €715 million of the 2013 pro forma revenue, Gemalto stated.
Commenting on the acquisition, Olivier Piou, Gemalto’s CEO, said, 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,” Piou said.
Prakash Panjwani, SafeNet’s chief executive, said: “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. This transaction will accelerate the delivery of Gemalto’s security solutions to the Enterprise while also making SafeNet’s data protection solutions accessible to the Banking and Telecom sectors – truly a win-win for everyone involved.”