Abingdon: Sophos to acquire US company Invincea

Cyber security company Sophos - which has just posted a 16% growth in billings - is to buy US software company Invincea for up to $120 million.

The Abingdon-based listed company will buy Invincea, a developer of patented advanced next-generation malware protection, for $100m in cash on closing of the deal plus up to $20m for an earn-out related to growth achieved during the first year of ownership.

Invincea Labs, a division of Invincea that has been separately managed and operated since 2010, will be de-merged prior to the acquisition and is not part of the deal.

The deal is subject to regulatory approval and is expected to complete by the end of the current financial year. It is also expected to be broadly neutral to cash earnings before interest, tax, depreciation and amortisation (EBITDA) in its first full year of ownership and thereafter.

Sophos said that the acquisition would extend and consolidate its lead in the growing endpoint cyber security market, and would be complementary to the Intercept X solution that Sophos had already launched.