Entrust Datacard, a Shakopee-based security solutions provider, has completed its acquisition of UK-based nCipher Security, a general purpose hardware security module (GP HSM) business. The deal was first announced in February.
The transaction was dependent on a separate deal nCipher’s parent company Thales was working on with Gemalto. Thales, which is based in Paris but has U.S. headquarters in Florida, was divesting nCipher to help enable its $4.8 billion purchase of digital security firm Gemalto, while Entrust wanted to bolster its GP HSM offerings.
Per terms of the deal with nCipher—which has been operating under Thales as an independent business since January—Entrust has absorbed more than 300 people within nCipher’s talent base, according to a company statement.
“We are extremely pleased to complete this acquisition and bring nCipher’s exceptional talent and technology into the Entrust Datacard portfolio,” said Todd Wilkinson, president and CEO of Entrust Datacard. “The need for secure network access and data integrity continues to multiply … [And] with nCipher now part of our solution portfolio, customers will see benefit from our expanded offerings for the most sensitive, high assurance use cases.”
The deal is in response to growth in the GP HSM market, which Entrust said is being driven by increased demand for stronger data and application security, encryption systems, and privacy regulations—such as the EU General Data Protection Regulation (GDPR). HSMs, which are considered the highest-level solutions for cryptographic security, comprise Entrust’s main focus area of business.
Entrust will offer the nCipher solution as part of its bundle of offerings, which include internet of things device credentialing and authorization systems.
For its part, being acquired by Entrust will enable nCipher to expand its compliance and cloud capabilities.
“This acquisition quickly expands the global footprint for nCipher solutions and accelerates our strategy for ‘as-a-service’ offerings,” said Cindy Provin, CEO of nCipher Security. “nCipher is excited to join the talented Entrust Datacard team.”
The nCipher Security business will continue to be based in Sunrise, Fla., with a cybersecurity development center in Cambridge, U.K., and a sales support center in Hong Kong.