Sophos announced plans July 28 to make a roughly $340 million bid to buy German security vendor Utimaco Safeware.
Utimaco focuses on data loss prevention and endpoint encryption technologies through its SafeGuard product line. According to Sophos officials, the acquisition would extend Sophos’ security and control strategy, which is aimed at protecting data and computers from external and internal threats due to data leaks.
If the deal, which will officially be on the table for Utimaco to accept or reject in August, is completed, Utimaco will become a new business unit within Sophos focused on data security.
Acquiring solid encryption and DLP technology fills a gap in Sophos’ portfolio. Two of its key rivals, McAfee and Symantec, have each made moves in those areas in the past year.
Sophos CEO Steve Munford said in a statement that the deal is a strong fit for both companies.
“Companies of all sizes are looking to protect against both external and internal threats, with one manageable solution,” Munford said. “Integrating endpoint protection, network access control and encryption provides us with a great platform for innovation as the market continues to focus on securing and controlling information.”
Officials at Sophos hope the deal will close by October.