Made in Germany, owned in Silicon Valley?

The market for privacy- and security-focused software solutions “Made in Germany” is shrinking. Over the past few years, US companies have increasingly invested in this sector, acquiring several German providers.

The impact of these acquisitions on the products of acquired companies is often unclear. In some cases, technologies and products are integrated into the portfolios of the new owners. What this means for the customers of these companies and the security of their stored data is not always immediately apparent.

Consolidation in the security market

What is certain, however, is that these recent acquisitions are part of a broader trend of German mid-sized security specialists being purchased by US firms. Just last year, the password manager solution Mateso, based in Neusäß, was acquired by Netwrix, and Dropbox bought the encryption solution Boxcryptor.

According to FTAPI, the acquisition of IT security solutions “Made in Germany” by non-European companies raises long-term concerns:

• How secure and sovereign will the data remain?

• What data protection standards will apply in the future?

• Will the companies be subject to European or US regulations?

More on this: “The cloud, made and hosted in Germany”

In light of the complex legal landscape—including the US CLOUD Act, Schrems rulings, NIS-2, and other regulations—it is difficult for companies to navigate the implications of such acquisitions while ensuring compliance with applicable laws.

Data sovereignty made in Germany

“Data sovereignty can only be guaranteed if data remains within Europe and is processed locally at all times,” says Ari Albertini, CEO of FTAPI. “Even if nothing appears to change initially following an acquisition by an international corporation, the reality is that the acquired company ultimately becomes part of a US organisation—and this will affect the security and sovereignty of the stored data.”

Companies currently seeking secure data exchange solutions should prioritise those developed and operated entirely within Europe. Solutions “Made, Hosted & Owned in Europe” not only offer regional proximity but also ensure full and unquestionable compliance with European data protection laws and security standards.

FTAPI continues to provide businesses, public authorities, and organisations with a fully European alternative, “Made and Hosted in Germany.” For companies impacted by acquisitions, FTAPI offers the option to take over existing contracts seamlessly.