Thales signed an agreement to acquire Vormetric, a provider of data protection solutions in physical, virtual, and cloud infrastructures, for $400 million, the company said Monday.

The acquisition is subject to routine closing conditions and is expected to fully close in the first quarter of 2016.

thales logo

Vormetric is headquartered in San Jose, Calif., with a workforce of 200 employees. The company helps over 1,700 enterprises protect sensitive data from internal and external threats. One of its signature products is the Vormetric Data Security Platform, which protects files, databases, and application data anywhere it resides with a high performance solution firewall set with transparent encryption, privileged user access controls, automation, and security intelligence, Vormetric said.

“The combination of Thales and Vormetric creates a global leader in data protection bringing our customers and partners industry-leading security solutions for protecting enterprises and governments against cybersecurity threats by securing the most critical data in the most critical places,” Alan Kessler, president and chief executive officer (CEO) of Vormetric, said in a statement on Tuesday.

Kessler explained Vormetric’s platform will be enhanced by Thales’ position as a market leader in hardware security modules, crypto, and key management. “Vormetric, its customers and partners will benefit from Thales’ worldwide leading position in cybersecurity, cryptography expertise, significantly funded R&D, as well as its global footprint to meet your growing business regardless of country,” Kessler added.

“The acquisition of Vormetric is a great opportunity to accelerate the growth of our cybersecurity activities. Combining Thales critical IT systems protection capabilities with Vormetric’s know-how in data protection will create a global leader in data security, offering comprehensive solutions for protecting enterprises against cybersecurity threats,” Patrice Caine, chairman & CEO of Thales, said in a statement.

Vormetric’s data protection capabilities “combines perfectly with Thales e-Security activities, which already hold a leading position in hardware security modules (HSM).” This acquisition complements Thales’ cybersecurity activities and strengthens the company’s profitable growth strategy, Thales said.