Gemalto to acquire SafeNet for $890m
SafeNet to become part of Gemalto's Payment & Identity segment
Digital security vendor Gemalto this week agreed to acquire 100% of SafeNet, which specialises in data protection and software monetisation.
Gemalto paid previous owner Vector Capital $890m on a debt free/cash free basis to acquire SafeNet, the vendor said in a statement.
According to Gemalto, SafeNet technology protects over 80% of the world's intra-bank fund transfers and serve more than 25,000 customers, at corporations and government agencies, in over 100 countries.
In 2013, SafeNet recorded revenues of $337m and profit from operations of $35m and expects revenues of $370m and profit from operations of $51m for 2014.
Once the acquisition is completed, the vendor will become part of Gemalto's Payment & Identity segment, and its Platforms & Services activity, which account respectively for €1.3bn and €715m of the 2013 pro forma revenue.
"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," said Olivier Piou, CEO at Gemalto.
"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."
The purchase price of $890m is self-funded with $440m from available cash and $450m drawn from existing long-term credit facilities. Depending on market conditions, Gemalto may refinance the credit facilities through a bond issuance or other means at a later date. The closing of the transaction is expected to occur in Q4 2014, the vendor said.