SAFENET acquired by GEMALTO
Context
Gemalto has signed a definitive agreement to acquire 100% of the share capital of SafeNet from Vector Capital. The transaction represents a full ownership transfer, bringing the specialized data protection company under Gemalto’s operational umbrella to form an integrated security powerhouse. The acquisition is strategically designed to bridge the security gap between the "edge" of the network—where Gemalto holds market leadership—and the "core" of the network, where SafeNet provides critical data and application protection. By combining portfolios, the combined entity creates a complete end-to-end security infrastructure. The rationale centers on the increasing need for organizations to secure their data as they transition to cloud and digital environments. This move significantly reinforces Gemalto’s Identity and Access Management (IAM) capabilities and provides a platform to accelerate deployment of advanced security solutions within the Enterprise and Government sectors. The transaction is structured as an all-cash acquisition, self-funded through a combination of existing cash reserves and the drawdown of long-term credit facilities. The acquisition is intended to remain accretive to earnings upon completion, maintaining a strong financial position for the combined group.
SAFENET, which reported an EBITDA margin of [members only] in 2014, is valued in this transaction at an EV/EBITDA multiple of 15x–25x, representing a premium to the average currently observed in the TMT (Tech, Media, Telecom) sector (14.6x).
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Target
SafeNet is a globally recognized provider of digital information security, specializing in the protection and management of sensitive data and high-value software applications. The company operates as a core component of critical digital infrastructure, serving a vast international client base that includes government agencies, multinational corporations, and major financial institutions. Its portfolio encompasses advanced cryptographic key management systems, Hardware Security Modules (HSMs), and sophisticated software license management solutions. By ensuring the integrity of data at the core of the network, SafeNet provides essential services for intra-bank fund transfers, cloud-based security, and secure digital authentication. The company’s business model is defined by its deep expertise in cryptography and its ability to secure information in increasingly complex, decentralized environments. With a substantial team of specialized cryptographic engineers, SafeNet delivers high-assurance security technologies that protect against unauthorized access and ensure compliance in heavily regulated sectors.
Ent. Value
$500M–1.5bn
Equity Value
[members only]
Multiples
EV / Revenue
1x–3x
EV / EBITDA
15x–25x
EV / EBIT
[members only]
Historical Financials (USD)
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Other operations with GEMALTO
| Date | Acquirer | Target | Country | Sector |
|---|---|---|---|---|
| 04/2019 | THALES | GEMALTO | NETHERLANDS | Cybersecurity Services |
REFERENCES
Valuation range: EV $500M–1.5bn
Revenue range: $250–500M
EBITDA range: $50–100M
EV/Revenue range: 1x - 3x
EV/EBITDA range: 15x - 25x
Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of SAFENET by GEMALTO are reserved for mynth community members. Register for free to unlock full data.
Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.