SafeNet calls off nCipher deal

Acquisition dropped because it would prove 'too expensive' SafeNet claims

SafeNet and UK-based security vendor nCipher have both claimed it is business as usual after SafeNet scrapped its £86m acquisition bid.

The US firm abandoned its acquisition attempt to avoid what it called the ‘considerable expense’ which would arise from the Office of Fair Trading’s decision to refer the case to the Competition Commission. Both firms have a strong position in the UK market.

Anthony Caputo, chief executive of SafeNet said: “[SafeNet] will continue its leadership role in the hardware secure modules market. Our product portfolio remains among the strongest in the industry and we will continue our technology innovations to maintain that leadership position.”

In a statement on its website nCipher said: “The Board believes that with this strategy nCipher is well-positioned to exploit a number of high-growth market developments within the broad IT security arena and this gives the Board confidence in the company’s future as an independent entity.”

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