PARIS--Digital security company Gemalto NV (GTO.AE) said Friday
it will buy SafeNet for $890 million, in a move that broadens the
European company's data protection operations and expands its
customer base to some of the largest U.S. companies.
Gemalto, which recorded 2.4 billion euros ($3.21 billion) in
revenue last year, said the acquisition will boost its operating
profit by around 10% in 2017.
Netherlands-based Gemalto said the combination of the two
companies makes for a good fit between Gemalto's authentication
technology and SafeNet's core network data protection, which
includes cryptographic systems used in cloud-based security.
Gemalto said the acquisition comes at a time when there is a
rising demand to safeguard sensitive digital information. Already
in 2014, nearly 400 million digital data records have been lost or
stolen, the company said.
"The opportunity to acquire SafeNet has come at exactly the
right time," Gemalto Chief Executive Olivier Piou said in a
statement. "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," he added.
SafeNet technology protects 80% of the world's intra-bank fund
transfers and the company has 25,000 customers including
governments and corporations such as Bank of America, Cisco, Dell
and Hewlett-Packard.
Gemalto will finance the acquisition with $440 million in
available cash and $450 million drawn from its existing long-term
credit facilities. The European company may refinance its credit
facilities by issuing bonds at a later date.
Write to William Horobin at william.horobin@wsj.com
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