Deal clears regulatory path for $5.4B acquisition of Gemalto
PKI solution and service vendor Entrust Datacard this week announced the acquisition of nCipher Security, a stand-alone business within Thales Group that specializes in general purpose Hardware Security Modules (HSMs).
The Lowdown: Thales said it’s shedding the nCipher HSM business to Entrust as part of its ongoing acquisition of Gemalto. European Union regulators had signaled that Thales’ proposed $5.4 billion Gemalto deal, announced in December 2017, consolidated too much HSM firepower in one place and reduced competition in the market.
The Details: Entrust officials said the acquisition of nCipher’s HSM cryptographic and key management solutions will be used to strengthen the company’s PKI portfolio and build out offerings to secure applications used in Internet of Things, digital payments, card issuance, and blockchain initiatives.
Terms of the deal were not disclosed. The acquisition, which is dependent on the completion of Thales’ Gemalto deal, is expected to close next month.
The Impact: Both nCipher and Gemalto are well known in the channel with active partner programs for resellers and service providers selling advanced app and data protection, encryption, and key management solutions used to safeguard systems and sensitive transactions. The nCipher partner program has more than 400 active channel members, while Gemalto’s four-tier Cipher channel partner program has close to 500.
The Buzz: “This acquisition is an excellent complement to our expertise in both cryptography and hardware and will extend our ability to meet the evolving security needs of our customers globally while allowing us to accelerate our own growth,” said Todd Wilkinson, president and CEO of Entrust Datacard. “The Thales General Purpose HSM solution, known as nCipher, has a strong market position based on a wide range of use cases, brings with it exceptional talent, and offers us the ability to develop even more comprehensive solutions for our clients.”
“NCipher Security is delighted to join Entrust Datacard,” said Cindy Provin, CEO of nCipher Security. “There is a powerful synergy between our solutions, and the combination of our organizations will accelerate innovation for our customers as they embark on initiatives such as mobility, cloud, and IoT to grow their businesses and simultaneously strive to protect data and manage ever-growing cyber risk.”