McAfee has agreed to acquire encryption expert SafeBoot for $350m in cash.

SafeBoot markets data protection software that uses encryption and access protection. The technology primarily targets mobile computers.

The privately held firm is based in The Netherlands and boasted revenues of €28.9m last year. The company filed for an initial public offering at the Euronext exchange last month.

Unencrypted data is a common source of leaks of confidential information. A stolen laptop from the US Department of Veterans Affairs in May 2006 exposed information on 28 million former servicemen.

On Monday, HM Revenue and Customs was forced to disclose the theft of a laptop from the boot of an employee's car.

The computer contained information on an undisclosed number of high value customers who had invested in Individual Savings Accounts, but was protected by high-level encryption.