France’s Thales on March 17 said it has completed its acquisition of the cyber security firm Vormetric, saying the deal makes it a global leader in data protection.
Thales paid 375 million Euros, or nearly $425 million at current exchange rates, for the Silicon Valley-based company. Thales said the deal accelerates its cyber security strategy.iStock Cyber Lock
“The combination of Vormetric and Thales e-Security’s expertise will create a world leader in data protection and a reference in cyber security,” Patrice Caine, chairman and CEO of Thales, said in a statement. “Today, businesses generate a rising volume of sensitive data for which Thales offers unparalleled protection solutions and services to answer the most demanding clients.”
Thales expects Vormetric to have about $75 million in sales this year. Alan Pellegrini, the president and CEO of Thales’ business in the United States, said in February that the combination of Vormetric with his company’s existing cyber business in the United States would generate about $175 million in sales this year and more than $200 million in 2017. He also said that Vormetric is growing at 50 percent annually.
Vormetric has about 200 employees and more than 1,500 customers globally.
Thales e-Security will be led by Alan Kessler, who was president and CEO of Vormetric. Kessler said on the company’s blog that the new entity offers a more comprehensive security solution with plans to build its product portfolio in particular to take advantage of the burgeoning Internet of Things market.