14 DAY TRIAL // Thales, a French based company that specializes in defense and aerospace electronics, is planning on expanding, which is why it wants to improve its information security services. That is why it is offering to buy nCipher for the total sum of ?50.7 million (that is just slightly above $100 million). Thales does not care about acquiring powerful brands or channels, it is only interested in the security technology.
Thales released this statement: "nCipher will complement Thales's encryption products portfolio by adding a hardware security module product range, a provisioning product for key management and a product to secure data stored on tape from loss, theft or compromise."
If we were to divide the ?50.7 million to all the shares that Thales is acquiring, then it would result that for each share Thales is paying 300 pence. That is 162 pence more than the price from the 10th of April.
Robert Jeens, Chairman of nCipher comments: "nCipher and Thales are two highly synergistic businesses with minimal operational overlap, and we believe that together we will be able to provide both independent and joint customers with a more effective and attractive way to deal with their ongoing security issues. The Board of nCipher believes that this offer recognizes the inherent value of our technology, services and staff, as well as delivering significant value to shareholders. Therefore we are pleased to recommend this offer to shareholders."
nCipher shares have been increasing in value since the 10th of April when the company received an offer, reaching at one point a value of 286 pence. It was just now revealed that the buyer was Thales.
According to Alex Dorrian, CEO of Thales UK the goal of this acquisition is to "bring together the best practices of both businesses" and offer Thales and nCipher customers a better and safer security solution. All the nCipher employees are to go on working as usual since the work force will not be modified.