French multinational company Thales (Euronext Paris: HO) has reached a $3.6 billion acquisition agreement for US-based cybersecurity company, Imperva. The deal, brokered with software investment firm Thoma Bravo, will position Thales as a cybersecurity powerhouse.
Thales, already renowned for its prowess in aerospace, defense, transport, and digital identity, will use this acquisition to amplify its cybersecurity business. The integration of Imperva will facilitate Thales’ entry into the fast-growing application security market and enable its data security expansion.
Following the completion of the transaction, Thales’ total cybersecurity business is projected to generate more than € 2.4 billion in revenues.
Thales CEO Patrice Caine commented, “The acquisition of Imperva marks a major milestone in Thales’ cybersecurity strategy…We are seizing a unique opportunity to accelerate our cybersecurity capabilities and taking an important step towards our ambition to build a world-class global cybersecurity integrated player.”
With over half a billion dollars in revenue in 2022 and more than 1,400 employees, Imperva is a cybersecurity leader that protects critical applications, APIs, and data. The company’s comprehensive portfolio combines unique expertise and products in the fast-growing application and data security markets, making it a major player in this field.
The acquisition promises significant value creation for Thales shareholders with $110 million of run-rate cost and revenue synergies. The financial profile of Thales’ Digital Identity and Security (DIS) segment is expected to be enhanced with significant medium-term adjusted EPS accretion. Thales forecasts that by 2027, Imperva’s EBIT margin will be around 20%, aligning with Thales’ global cybersecurity product business.
The deal is expected to close at the beginning of 2024, pending customary anti-trust and regulatory approvals. Thales will fund the acquisition within its disciplined capital deployment framework, with no impact on the group’s existing dividend policy or ongoing share buyback program.
The acquisition signals a leap forward in Thales’ step-change in cybersecurity. The company’s future plans include grouping all civil cyber activities within its Digital Identity & Security (DIS) segment by January 1st, 2024. This move will enhance DIS’ position as a leading player in civil cybersecurity products and solutions and facilitate the capture of synergies within the full portfolio.
The next few years will reveal if Thales’ gamble pays off and their acquisition of Imperva accelerates their cybersecurity capabilities as projected.
