** Shares in Thales edge down 1.8% after the French defence electronics and cybersecurity company said on Tuesday it had agreed to buy U.S. cybersecurity company Imperva in a deal worth $3.6 billion on an enterprise value basis

** The deal is valued at 6.1x 2024E EV/Sales, 17x 2024E EV/EBIT post synergies and 13x 2027E EV/EBIT post synergies

** "These are punchy multiples for the A&D [Aerospace and Defense - MA] industry but much more typical for the cybersecurity space," says Jefferies

** The brokerage says that key unknowns at this stage are the timing of synergies and implementation costs

** The brokerage notes that synergies are expected to essentially double 2024 EBIT implied at about $100 million, which implies some execution risk

** "We also note that ROCEis only expected to stand above WACC 5 years post closing, and EPS accretion is expected to be "significant" in the medium term, implying some dilution in the early stages", it adds

** Stock on track for worst day since November 2022, among top fallers on France's blue-chip index CAC 40

(Reporting by Michal Aleksandrowicz)

((michal.aleksandrowicz@tr.com))