Gemalto, a digital security firm, has signed a definitive agreement to acquire 100% share capital of SafeNet, a data protection and software monetization firm, from Vector Capital for $890m.
The takeover will enable Gemalto to integrate SafeNet’s technologies, expertise and services for securing complete infrastructure, such as network, users, data, and software, at the core and at the edge.
Upon completion of the acquisition, SafeNet will significantly reinforce Gemalto’s Identity and Access Management business.
The acquired business will operate as a part of Gemalto’s Payment & Identity segment, and its Platforms & Services activity that account for 1.32bn and 715m of the 2013 pro forma revenue, respectively.
Gemalto will partially self-finance the transaction with $440m from available cash, while $450m will be drawn from existing long-term credit facilities.
Gemalto CEO Olivier Piou 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."
Maryland-based SafeNet operates in 27 nations.
