Cloudflare Inc. (NET) and Deutsche Telekom AG (DTEGY) said Tuesday they formed a strategic partnership to strengthen network security and resilience for European businesses.

Cloudflare Expands European Reach

Under the agreement, Deutsche Telekom will add Cloudflare's security and connectivity products to its enterprise portfolio. The companies will also directly interconnect their networks.

The partnership gives Cloudflare broader access to European enterprise customers through Deutsche Telekom's sales and service network.

Meanwhile, Deutsche Telekom's enterprise IT unit, T-Systems, will expand its offerings across network performance, reliability and security.

Focus on Cloud, AI Security

Deutsche Telekom will train and certify employees on Cloudflare's platform to support consulting, implementation and managed security services.

The companies also plan to develop products addressing digital sovereignty, cloud and AI security, and post-quantum cryptography as European businesses face rising cybersecurity and resilience requirements.

Cloudflare estimates its addressable market at about $238 billion in 2026, rising to $384 billion by 2029.

The Deutsche Telekom partnership could help Cloudflare pursue more of that opportunity by extending its enterprise distribution and services reach across Europe through Deutsche Telekom and T-Systems.

Cloudflare Targets Post-Quantum Security

Separately, Cloudflare said Tuesday it plans to launch a public Certificate Authority to issue digital certificates used to verify website identities and encrypt internet traffic.

The new service will support traditional encryption and post-quantum Merkle Tree Certificates, or MTCs. Cloudflare said the system will let website operators manage both certificate types through one platform.

The company also agreed to acquire publicly trusted Root CA key material from GlobalSign. The deal is expected to close within two months, subject to customary conditions.

Rollout Planned for 2027

Cloudflare has applied to join the Chrome, Apple, Microsoft and Mozilla root programs.

It plans to begin issuing traditional certificates after completing those approval processes. Production MTC issuance is expected to start in the first quarter of 2027.

Cloudflare said the new CA will also include automated certificate replacement, public operational reporting and support for older devices.

NET Price Action: Cloudflare shares were down 0.45% at $352.39 at the time of publication on Tuesday. The stock is approaching its 52-week high of $367.43, according to market data.