The deal propels Thales into the application security market, generating significant revenue synergies and setting new targets for its Digital Identity and Security segment.
Thales, a global technology leader, has announced today its agreement with Thoma Bravo, a major software investment firm, for the acquisition of 100% of Imperva, a prominent US-based data and application cybersecurity company. The acquisition comes at an enterprise value of $3.6 billion, marking a significant step in Thales’ cybersecurity strategy.
With this acquisition, Thales aims to elevate its cybersecurity business to new heights. Imperva’s expertise will foster growth in data security and open doors to the promising application security market, propelling Thales’ total cybersecurity business to generate revenues of more than €2.4 billion.
The transaction price is based on a $3.6 billion enterprise value, indicating substantial value creation for Thales shareholders. The deal is projected to yield $110 million of run rate cost and revenue synergies, with enhanced financial profiles for the Digital Identity and Security (DIS) segment. Thales expects significant medium-term adjusted EPS accretion, and the transaction-adjusted Return on Capital Employed (ROCE) is predicted to exceed the Weighted Average Cost of Capital (WACC) in Year 5 post-closing.
The integration of Imperva into Thales will significantly broaden the company’s addressable market in the rapidly growing cybersecurity sector. The new financial targets set for Thales’ DIS activity include 6% to 7% organic sales growth between 2024 and 2027 and an EBIT3 margin reaching 16.5% by 2027[2].Patrice Caine, Chairman and Chief Executive Officer of Thales, expressed his excitement about the acquisition: “The acquisition of Imperva marks a major milestone in Thales’ cybersecurity strategy. With this acquisition, we are seizing a unique opportunity to accelerate our cybersecurity capabilities and build a world-class global cybersecurity integrated player, providing a comprehensive portfolio of products and services.”
Imperva’s Chief Executive Officer, Pam Murphy, also shared her thoughts: “Today’s announcement represents an exciting new chapter for Imperva, one that will further our mission to help organizations protect data and all paths to it, bring better protection and strategic value to our customers and partners, and create more opportunities for our team members.”
Seth Boro, Managing Partner at Thoma Bravo, acknowledged Imperva’s leading role in the cybersecurity market and the successful partnership: “Over the course of our more than four years of partnership, Imperva further differentiated itself in the competitive cybersecurity market through accelerated growth and innovation.”
Imperva, with over half a billion dollars in revenue on a trailing twelve-month basis in 2022 and over 1,400 employees, is renowned for protecting critical applications, APIs, and data anywhere at scale. The company’s comprehensive portfolio includes industry-leading application security solutions like Web Application Firewall (WAF), Advanced Bot Protection, and DDoS prevention, along with data security offerings such as Data Discovery and Classification, Data Security Governance, and real-time risk monitoring on databases.
The acquisition will make Thales’ data and application security offerings more robust, yielding a world-class global cybersecurity portfolio structured around three product areas: Identity, Data Security, and Application Security. The combination of Thales and Imperva’s strengths is expected to bring increased capabilities in protecting data at rest and data in use.
The acquisition is set to be finalized by the beginning of 2024, pending customary anti-trust and regulatory approvals. Thales’ disciplined capital deployment framework ensures no impact on the Group’s existing dividend policy or ongoing share buyback program.
Thales’ focus on cybersecurity has been consistently growing, and this latest acquisition reflects the company’s commitment to becoming a leader in the industry. The addition of Imperva’s capabilities is expected to boost Thales’ global cybersecurity presence significantly.
As the cybersecurity landscape continues to evolve, Thales is positioning itself as a key player, offering a comprehensive suite of products and services to address the most critical digital security challenges faced by organizations worldwide.