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UK encryption company bought by French defence specialist

A French defence company is delving into the online security field by buying UK encryption firm nCipher.

Thales, which specialises in electronics, has acquired the Cambridge-based encryption specialist for £50.7 million, which the company's board believes will add value to its shareholders.

nCipher chairman Robert Jeens said: "nCipher and Thales are two highly synergistic businesses with minimal operational overlap, and we believe that together we will be able to provide both independent and joint customers with a more effective and attractive way to deal with their ongoing security issues."

The move will see the company become part of Thales UK, which was interested in gaining a foothold in the information and communication systems security sector.

According to the company, the acquisition will also complement its encryption products portfolio by adding a hardware security module to it.

nCipher's share price has been rising steadily in the last few weeks following its announcement earlier of the impending sale.