Thales seeks growth in cybersecurity business

As it prepares to close an acquisition that will nearly double its U.S. cybersecurity sales, Thales is seeking more growth in the cyber market.

Speaking to reporters today, Alan Pellegrini, chief executive of Thales USA, said the company's pending acquisition of Vormetric will complement its existing work.

Thales' cybersecurity business, known as e-Security, already encrypts data moving across networks, while Vormetric specializes in software-based protection for data at rest, he said.

Thales' cyber business in the U.S. has surpassed $100 million per year in sales, he said. With the addition of Vormetric -- the deal is anticipated to close in March -- the company expects to have about $175 million in 2016 sales, according to Pellegrini.

He noted that Vormetric is based in Silicon Valley, an area where "we want to increase our footprint."

Thales is set to pay $400 million for the acquisition, an amount Pellegrini said was justified.

"We paid a substantive price for Vormetric because it's an attractive market and they were an attractive company. They demand a premium," he said, adding: "We felt for us it was a very fair price, and we will certainly realize the value on it."

Pellegrini said both Thales and Vormetric provide cybersecurity to commerical companies and government agencies. He told reporters Thales sees cybersecurity as one of the areas "growing most rapidly in the U.S."