Sophos plans to acquire German data security company

Security vendor Sophos plans to acquire Utimaco, a German company specializing in software that aims to prevent sensitive data from escaping corporate networks, an increasing focus with the rise in data breaches.

The offer will be tendered in August, said Graham Cluley, Sophos' senior technology consultant. German financial regulations require Sophos to announce its intention to acquire Utimaco before an offer is formally presented. The deal must also be approved by the German financial regulator.

Under preliminary terms, Sophos would buy 75 percent of Utimaco's outstanding shares at euro 14.75 (US$23.17) for a total of euro 217 million. In a separate transaction, it would buy the remaining 25 percent from Investcorp Technology Partners, a private equity company with offices in the U.S., U.K. and Bahrain.