Gemalto is acquiring SafeNet for $890 million

Amsterdam-based digital security firm Gemalto says it will close on an $890 million deal to buy SafeNet later this year. “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,” Gemalto CEO Olivier Piou said in a press release. The company claims more than 400 million digital data records have been lost or stolen so far in 2014.

Digital security company Gemalto NV is to 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 said Friday that U.S.-based SafeNet’s network data protection offering, which includes cryptographic systems used in cloud-based security, was a good fit with its authentication technology. The Netherlands-based company, which reported €2.4 billion ($3.21 billion) in revenue last year, added that the deal would boost its operating profit by around 10% in 2017. The acquisition comes amid rising demand for products that safeguard sensitive digital information, with Gemalto claiming that so far this year nearly 400 million digital data records have been lost or stolen. “The opportunity to acquire SafeNet has come at exactly the right time,” Gemalto Chief Executive Olivier Piou said. “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.