Thales has put up $440m to acquire Vormetric, which develops data protection technology for physical, virtual and cloud infrastructures.

The transaction, announced late Monday, is subject to customary closing conditions but is expected be finalised during the first quarter of 2016.

The deal will allow Thales to acquire technology to expand into adjacent markets, from its current core hardware-based enterprise encryption technology business.

San Jose-based Vormetric specialises in developing data security solutions that protect data-at-rest across physical, big data and cloud environments.

With a workforce of 200, it helps over 1,500 enterprises, including 17 of the US top 30 companies, to protect their sensitive data from both internal and external threats.

The Vormetric Data Security Platform protects file, database and application data. Vormetric’s revenues are on schedule to reach $75m for the current fiscal year.

Thales e-Security specialises in hardware security modules (HSMs) that form a key part in systems that protect the networks and data of 19 of the 20 world’s largest banks. Other customers include leading technology companies, manufacturers, and government. ®