Thales to Acquire Leading Cybersecurity Company Imperva for $3.6 Billion

THales (Euronext Paris: HO) has made a significant move in the cybersecurity space with the announcement of its agreement to acquire Imperva, a prominent US-based data and application cybersecurity company, for an enterprise value of $3.6 billion. Thales, a global leader in various industries, including defense, aerospace, and digital security, is looking to bolster its cybersecurity capabilities and expand into the application security market through this strategic acquisition.

Imperva, with over $500 million in revenue in 2022 and more than 1,400 employees, is a cybersecurity powerhouse that specializes in safeguarding critical applications, APIs, and data across all stages of the digital journey. The company’s impressive portfolio includes an industry-leading Web Application Firewall (WAF), Advanced Bot Protection, DDoS protection, and a comprehensive Data Security platform that covers data discovery, classification, access monitoring, risk analysis, and intrusion detection.

The integration of Imperva into Thales will significantly broaden Thales’ addressable market and enhance its data and application security offerings. The combination will create a world-class global cybersecurity portfolio, focused on three product areas: Identity (Thales), Data security (Thales and Imperva), and Application security (Imperva).

Patrice Caine, Chairman and Chief Executive Officer of Thales, expressed his excitement about the acquisition, highlighting the opportunity it presents to accelerate their cybersecurity capabilities and build a comprehensive global cybersecurity player. He emphasized the shared vision and DNA between Thales and Imperva and the value they can create together.

The acquisition will also bring substantial value to Thales shareholders, with projected run-rate cost and revenue synergies of $110 million. Furthermore, Thales’ Digital Identity and Security (DIS) activity is expected to experience enhanced financial growth, with organic sales growth targeted at 6-7% between 2024 and 2027 and an EBIT margin reaching 16.5% in 2027.

Pam Murphy, Chief Executive Officer of Imperva, also expressed enthusiasm for the partnership, citing the opportunity to bring better protection and strategic value to customers and partners. She believes that together with Thales, they can deliver more innovative and disruptive solutions to address the greatest security challenges faced by organizations today.

The closing of the transaction is expected by early 2024, subject to customary anti-trust and regulatory approvals. This acquisition aligns with Thales’ disciplined capital deployment framework and will have no impact on the company’s existing dividend policy or share buyback program.

Thales’ foray into the cybersecurity market has been a strategic focus for the company, and this acquisition, along with previous moves in the cybersecurity space, signifies a step-change in their cybersecurity business. With the addition of Imperva’s expertise and capabilities, Thales is poised to further solidify its position as a global leader in cybersecurity, providing comprehensive and innovative solutions to protect critical digital assets and support organizations in their digital transformation journeys.

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