Thales and nCipher are pleased to announce that they have reached agreement on the terms of a recommended cash offer to be made by Thales UK, a wholly owned subsidiary of Thales, for the entire issued share capital of nCipher PLC (NCH.L).
Under the terms of the Offer, nCipher shareholders will receive 300 pence in cash for each nCipher share. Accordingly, as at 10 July 2008, the Offer values nCipher at approximately £50.7 million.
nCipher, based in Cambridge, UK, is a leading supplier of encryption products for organizations that need to protect sensitive data. nCipher is delivering solutions in the fields of key management and cryptographic hardware. nCipher operates largely in the UK and the US, with customers including governments, financial institutions, and public and private enterprises. In 2007, nCipher generated revenues of approximately £24 million.
The acquisition of nCipher is in line with Thales' strategy of expanding its presence in the sector of information and communication systems security. More specifically, nCipher will complement Thales' 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. Combined technological strengths, a diverse product portfolio, strong brand leadership, and a global institutional customer base, will provide expanded opportunities for customers and employees.
Commenting on the Offer, Alex Dorrian, CEO of Thales UK, said: 'The acquisition of nCipher will bring together the best practices of both businesses in order to provide our customers with an enlarged security product range and a more complete suite of security services across the data encryption industry. The acquisition underpins our strategy of investing in growing sectors like security.'