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 LOGIN in 2014, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN premium to the average currently observed in the TMT (Tech, Media, Telecom) sector (13.6x).

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