Digital security firm Gemalto has signed a definitive agreement to acquire 100 per ceny of the share capital of data protection and software monetisation company SafeNet from Vector Capital for US$890 million on a debt free/cash free basis.

Gemalto said with SafeNet it could combine the best technologies, expertise and services available for securing a complete infrastructure, including network, users, data, software, at the core and at the edge.

The purchase price of US$890 million is self-funded with US$440 million from available cash and US$450 million 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, after approval from the relevant regulatory and antitrust authorities,” the company 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,” said Gemalto chief executive officer (CEO) Olivier Piou.

“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.”

“We are very excited for the opportunity to join Gemalto, which is recognized internationally for leadership in the digital security domain. Our products and routes to market are perfectly complementary and our visions for the future naturally intertwined,” said Prakash Panjwani, SafeNet president and CEO.

“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.”

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