The Netherlands-based digital security company, Gemalto, is acquiring data protection firm SafeNet for $890m to strengthen its data protection and security services and expand its operations in the US.
SafeNet provides data protection solutions, which include encryption key management systems, software license management, and cryptographic systems for cloud-based security that will compliment Gemalto's authentication technology.
Gemalto plans to make SafeNet a part of its Payment & Identity segment. It plans to create a complete infrastructure consisting of network, software, users and data.
The deal is expected to be closed in the fourth quarter and boost Gemalto's operational profit by 10% in 2017.
According to Gemalto, the acquisition has been made at the right time. Companies are looking for data protection solutions as nearly 400 million digital data records have been stolen this year alone.
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. Overall, our global leadership in digital security will be reinforced."
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