# France’s Thales to buy Imperva in $3.6 billion cybersecurity deal Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-07-25 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Thales to buy Imperva in $3.6 billion cybersecurity deal Meta Description: Thales to acquire U.S. cybersecurity company Imperva for $3.6 billion to enhance its digital identity and security division, targeting the U.S. market against URL: https://financedigest.com/frances-thales-to-buy-imperva-in-3-6-billion-cybersecurity-dealhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-07-25t051820z1lynxmpej6o047rtroptp4ukraine-crisis-france-thales-1736813723822-compressed.jpg) # France’s Thales to buy Imperva in $3.6 billion cybersecurity deal By Tim Hepher and Mathieu Rosemain PARIS (Reuters) -France’s Thales said on Tuesday it would buy U.S. cybersecurity company Imperva in a deal [worth $3.6 billion](https://www.financedigest.com/rheinmetall-expects-german-ammunition-order-worth-billions-soon-ceo.html "Rheinmetall expects German ammunition order worth billions soon -CEO") as it steps up expansion outside its historic defence business in the war against bots and hackers. Thales’ move signals the group is ready to spend large sums to beef up its digital identity and security (DIS) division and take [market share](https://www.financedigest.com/world-shares-rally-as-china-offers-markets-a-hand.html "World shares rally as China offers markets a hand") in the United States, where Imperva serves some of the biggest companies. Thales said the price of the acquisition from buyout firm Thomas Bravo implied an enterprise value of 17 times 2024 operating [earnings forecasts](https://www.financedigest.com/centrica-names-obrien-as-new-cfo-raises-earnings-forecast.html "Centrica names O’Brien as new CFO, raises earnings forecast"). It’s a significant amount,” said Nicolas Arpagian, vice-president at cyberconsulting firm HeadMind Partners, adding it was unusual to see a large French corporation buy such an asset from a [private equity](https://www.financedigest.com/private-equity-resilience-leads-to-opportunity.html "Private Equity – Resilience Leads to Opportunity") firm. “Now, there’s the whole question of integration: software is a living product, you need well-trained people to steer it, drive it and constantly adapt it.” Shares in [Europe’s largest](https://www.financedigest.com/portugal-set-to-start-up-europes-largest-floating-solar-park.html "Portugal set to start up Europe’s largest floating solar park") defence electronics provider, which also makes civil aircraft parts and digital security systems, fell almost 2% in early trading and were down by 0.4% at 1035 GMT. Thales said [buying Imperva would generate around](https://www.financedigest.com/what-a-5-note-will-buy-you-around-the-world.html "What a £5 note will buy you around the world") $110 million of pretax synergies, including $50 million of cost savings and $60 million linked to revenue opportunities. The [combined business would have proforma revenues of 4.5 billion euros](https://www.financedigest.com/naturgys-profit-rises-on-lng-gains-soothing-shareholders-by-pietro-lombardi-madrid-reuters-spanish-power-utility-naturgy-reported-on-monday-an-88-jump-in-profit-for-the-first-six-months-of.html "Naturgy’s profit rises on LNG gains, soothing shareholders By Pietro Lombardi MADRID (Reuters) – Spanish power utility Naturgy reported on Monday an 88% jump in profit for the first six months of the year, boosted by strong earnings at its liquefied natural gas (LNG) business, which could help it to win over restive investors. Earlier this month, the company said it would increase its dividend floor through 2025 while trimming expected investment, as it sought to make rewarding shareholders a priority. Pleasing them has become a focus as Naturgy considers changes that could reshape the company and after arguments over the potential appointment of a chief executive. Naturgy’s first-half net profit jumped to 1.05 billion euros (.16 billion), boosted by its liquefied natural gas (LNG) business. Shares were down 0.2% in mid-morning trading, bucking deeper declines, in particular for Spain’s blue-chip banks and utilities after a general election on Sunday produced no clear winner. Renta 4 Banco analyst Angel Perez Llamazares said Naturgy performed better than expected, adding “cash flows also beat our expectation,” and debt fell more than expected. After natural gas prices hit record levels last year, Naturgy said a fall in procurement costs this year and hedging gains had boosed profits. In the first half of the year, the company “exceeded the objectives of operating efficiency, cash generation, investment materialisation and debt reduction,” Executive Chairman and CEO Francisco Reynes said. After rival Iberdrola named a separate CEO last year, Naturgy is the only large energy company in Spain to combine the roles of executive chairman and CEO. Earlier this month, the company raised the dividend floor to 1.40 euros a share, from 1.20 euros. Operating profit (earnings before interest, tax, depreciation and amortisation) is expected to reach 5.1 billion euros, compared with a previous guidance of 4.8 billion euros. It said it was targeting net profit of 1.8 billion euros in 2025. Naturgy also relaunched its plan to split regulated infrastructure operations and liberalised energy businesses into two listed companies. The project had been suspended after the Ukraine war disrupted energy markets and analysts are still sceptical. “We believe it is unlikely that Naturgy will be able to implement its asset split in the short term and it is also unlikely that a big change in the shareholding of the company would occur,” said RBC analyst Fernando Garcia. ( = 0.8986 euros) (Reporting by Pietro Lombardi, editing by Inti Landauro and Barbara Lewis)") in 2024, rising to 5.4-5.5 billion in 2027. Thales defended the purchase price, [saying it was paying 6.1 times sales](https://www.financedigest.com/aldi-uk-says-december-sales-up-26.html "Aldi UK says December sales up 26%") for a business that Thomas Bravo had bought at a multiple of five times while in the meantime making it profitable. Those valuations had more recently been closer to 7-8 times [sales after soaring](https://www.financedigest.com/mcdonalds-sales-soar-on-higher-u-s-prices-newer-menu-items.html "McDonald’s sales soar on higher U.S. prices, newer menu items") as high as 18-20 times during a market bubble at the end of last decade. “We are very comfortable with the level of valuation that we put on the table,” CEO Patrice Caine told reporters. “This really changes our scale in civil cybersecurity,” he told analysts. Cyberattacks have become the top worry for [global corporate](https://www.financedigest.com/global-automotive-v-belts-market-insights-2021-2028-contitech-ag-herthbuss-zhejiang-kaiou-transmissions-belt-co-ltd-gates-corporation-robert-bosch-ag-more.html "Global Automotive V-belts Market Insights 2021-2028 || ContiTech AG, HERTH+BUSS, Zhejiang Kaiou Transmissions Belt Co., Ltd., Gates Corporation, Robert Bosch AG, & more") executives, according to a recent survey by PwC. [France last year opened a dedicated campus outside Paris](https://www.financedigest.com/air-france-and-airbus-face-french-court-over-rio-paris-crash.html "Air France and Airbus face French court over Rio-Paris crash") to tackle hacking. Thales said the deal would deliver a medium-term [boost to its earnings](https://www.financedigest.com/germanys-fraport-sees-earnings-boost-on-higher-passenger-volumes.html "Germany’s Fraport sees earnings boost on higher passenger volumes") per share and add close to $500 million in revenue. Talks with Thomas Bravo, which has built a large portfolio of cybersecurity assets, started in the first quarter and accelerated over the last three months, two [sources close](https://www.financedigest.com/siemens-energy-close-to-selling-stake-in-windar-renovables-source.html "Siemens Energy close to selling stake in Windar Renovables – source") to the matter said. The acquisition is Thales’ biggest since it bought [digital identity](https://www.financedigest.com/transparency-and-decentralisation-the-remedy-to-our-digital-identity-fears.html "Transparency and decentralisation, the remedy to our digital identity fears") company Gemalto in 2019 for $5.6 billion. Thales said the deal would close in 2024 subject to approvals, and did not anticipate significant hurdles. Morgan Stanley and Centerview Partners acted as financial advisers to Thales. (Reporting by Sudip Kar-Gupta; Editing by Bernadette Baum and Mark Potter) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---