In a deal aimed at expanding its customer base, Zix Corp. (Nasdaq: Zixi) has purchased email encryption provider Entelligence Messaging Server (EMS) from Entrust Datacard. Financial terms were not disclosed.

EMS’ encryption technology works on most major e-mail servers, including Microsoft Outlook. Zix provides email data protection services, including for mobile devices, and serves customers in the healthcare, financial services, and government sectors. Earlier in 2017, Dallas-based Zix acquired another e-mail security company called Greenview Data.

"The acquisition of the Entelligence Messaging Server business builds on our strength as the leader in email encryption and allows us to accelerate our product roadmap,” says Zix CEO Dave Wagner.

The rise in data breaches and ransomware attacks is making businesses reassess their cybersecurity efforts and creating attractive deal opportunities in the sector. A number of strategic buyers are looking for acquisitions in the data security space to protect everything from mobile devices to e-mails. Honeywell International Inc. (NYSE: HON) purchased Nextnine; Open Text Corp. (Nasdaq: OTEX) bought Guidance Software Inc.; and Symantec Corp. (Nasdaq: SYMC) announced plans to buy Fireglass for undisclosed terms.


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Demitri Diakantonis

Demitri Diakantonis

Demitri Diakantonis joined SourceMedia in 2015 and serves as Assistant Managing Editor of Mergers & Acquisitions and writes The Buyside column about corporate dealmaking, and also covers the consumer sector.