Thales, Gemalto Obtain DoJ Clearance for Merger

“The approval is dependent on Thales’ agreement to sell off its Hardware Security Modules business, a condition that was also set by other regulatory authorities, perhaps most notably the European Commission.”

Thales and Gemalto are now on the cusp of sealing the deal for their proposed merger: The companies have announced that Thales’ offer to acquire Gemalto has now received the approval of the United States Department of Justice’s Antitrust Division, subject to court approval.

The approval is dependent on Thales’ agreement to sell off its Hardware Security Modules business, a condition that was also set by other regulatory authorities, perhaps most notably the European Commission. Thales and Gemalto together make up a substantial portion of Europe’s HSM market.

In a statement announcing the DoJ approval, Thales and Gemalto asserted that it “will allow the companies to proceed with the Offer,” adding later that they expect the deal to close this month.

The companies had initially aimed to complete their merger in the second half of 2018, but pushed back the acquisition offer’s deadline after the European Commission announced it would launch an in-depth antitrust investigation. In recent months, Thales and Gemalto have been consistent in their prediction that they would obtain all the needed regulatory approvals to close the deal in the first quarter of this year, an ambition that appears to be within reach.