Raytheon acquires government business of data protection firm SafeNet
- Deal provides opportunities in growing encryption market
To support the U.S. government's growing need for protected, encrypted data, Raytheon Company (NYSE: RTN) has acquired the Government Solutions business of SafeNet Inc., a privately held data security firm.
Terms of the agreement were not disclosed. The transaction will not materially impact Raytheon's total company sales or earnings per share for the fourth quarter of 2012 or fiscal year 2013.
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The acquisition increases Raytheon's ability to provide the most advanced encryption capabilities needed by government customers to protect classified data. SafeNet's Government Solutions business brings a broad range of federally-approved encryption solutions that complement Raytheon's sophisticated communications systems for enabling the U.S. military to securely transmit classified voice and data traffic.
"This transaction, part of Raytheon's strategic road map, provides an immediate insertion of proven strong technologies and talent into our business," said Daniel J. Crowley, president of Raytheon Network Centric Systems (NCS). "SafeNet's government business offers industry-leading encryption technology that integrates very well with Raytheon's existing solutions, providing government and industry customers with the information assurance they need today and in the future."
The trusted offerings of SafeNet Government Solutions include encryption products for all levels of integration, and target high-speed, satellite, networking, data link, voice, key management, and wireless communication markets. Based in Torrance, Calif., the business has approximately 170 employees.
Jim Summers, the general manager of SafeNet Government Solutions, will join Raytheon and will continue to lead the organization. It will become the Secure Information Systems product area within NCS's Integrated Communication Systems business, headed by NCS Vice President Scott Whatmough.
Source : Raytheon Corporation (NYSE: RTN)