Thales, a leading cybersecurity company, has announced its acquisition of Imperva for $3.6 billion. With this strategic move, Thales aims to bolster its data security capabilities and enter the lucrative application security market. The acquisition will further solidify Thales’ position in the cybersecurity sector, generating over €2.4 billion in revenues for its total cybersecurity business.
The acquisition is expected to bring significant value to Thales shareholders, with estimated run-rate cost and revenue synergies of $110 million. It will enhance the financial profile of Thales’ Digital Identity and Security (DIS) segment and provide substantial medium-term adjusted EPS accretion. Thales expects the transaction’s adjusted ROCE to surpass WACC in the fifth year after closing.
Imperva’s inclusion in Thales’ portfolio will significantly expand the company’s addressable market, particularly in the fast-growing cybersecurity sector. With an impressive track record and revenue of over half a billion dollars in 2022, Imperva is a key player in protecting critical applications, APIs, and data on a global scale.
The financial targets for Thales’ DIS activity have been revised, targeting organic sales growth of 6% to 7% from 2024 to 2027, with an EBIT margin of 16.5% in 2027.
Thales views this acquisition as a crucial milestone in its cybersecurity strategy. The move aligns with the company’s vision to build a world-class global cybersecurity player offering a comprehensive range of products and services. The integration of Imperva into Thales will not only enhance its cybersecurity solutions but also address the digital security challenges faced by customers.
Both Thales and Imperva share a common vision and culture, making the partnership a promising prospect for delivering innovation and efficiency through disruptive solutions. The acquisition is expected to close by the beginning of 2024, subject to customary anti-trust and regulatory approvals.
This acquisition sets Thales on a path of accelerated growth in the cybersecurity sector, enabling it to offer a broader range of data and application security solutions. With the combination of their strengths, Thales and Imperva are poised to capitalize on commercial opportunities within their existing client base and drive revenue synergies in the coming years.
The move also enhances Thales’ position as a go-to player for civil cybersecurity products and solutions within its Digital Identity & Security segment. Thales plans to regroup all its civil cyber activities under DIS to facilitate synergy capture and strengthen its market position.
The acquisition is expected to be highly value-creative for Thales shareholders, providing immediate accretion to the company’s growth and margin profile. It represents a well-considered step in Thales’ disciplined capital deployment strategy, ensuring a solid investment grade profile and continuation of its attractive capital allocation policy.