Gemalto to acquire 3M's Identity Management Business
(Thomson Reuters ONE) -
Transaction includes 3M Cogent Inc., Document Reader and Secure Materials
Businesses
* This strategic acquisition rounds out Gemalto Government Programs offering
by adding biometric technology and ideally positions the Company to provide
solutions for the promising commercial biometrics market
* The purchase price of US$850 million will be financed with cash and existing
credit facilities
* Closing is expected to occur in the first half of 2017
* This acquisition will be accretive to adjusted Earnings Per Share from the
first year on a pro-forma basis
Amsterdam, December 9, 2016 at 02:30am - Gemalto (Euronext NL0000400653 - GTO),
the world leader in digital security, today announced that it has entered into
agreements to acquire 3M's Identity Management Business for US$850 million.
3M's Identity Management Business is comprised of 3M Cogent Inc., which provides
a full spectrum of biometric solutions with a focus in civil identification,
border control and law enforcement, and 3M's Document Reader and Secure
Materials Businesses.
Headquartered in the United States and present on 3 continents, 3M's Identity
Management Business is a trusted partner to governments, law enforcement, border
control and civil identification bodies worldwide. It offers world-class
biometric based end-to-end solutions enabling identity verification and user-
friendly authentication. 3M's Identity Management experienced and highly-skilled
team of approximately 450 experts has developed proven biometrics algorithms
(finger, face, iris, etc.) and is at the forefront of innovation with the latest
multi-modal biometric solutions. Annual revenue of the business is approximately
US$215M and profit from operations at US$58M[1].
As Gemalto pursues its expansion and prepares for the future, this acquisition
both completes Gemalto Government Programs offer by in-sourcing biometric
technology and ideally positions the Company to provide solutions for the
promising commercial biometrics market. Our combined offers and experience in
the Public sector to manage the enrolment, identification of individuals, flow
of passengers and border control should contribute to stronger national
security. On the commercial side, as online and mobile transactions grow, new
forms of multi-factor authentication and identification are needed to complement
physical ID documents. Combining market access and technologies from 3M's
Identity Management Business and Gemalto will allow trusted national identities
and strong biometric authentication to develop throughout the digital economy.
Once the acquisition is completed, 3M's Identity Management Business will become
part of Gemalto Government Programs business which recorded a revenue of ?391
million in 2015.
The closing of the transaction is expected to occur in the first half of 2017,
after approval from the relevant regulatory and anti-trust authorities and
employee consultation where required. After the acquisition is completed,
Gemalto will retain a strong financial structure with a net debt/adjusted EBITDA
ratio below 1.5. The transaction will be accretive to adjusted Earnings Per
Share. As part of our long term strategy and the development of this core
technology across our businesses, the acquired business revenue is expected to
grow at +10% CAGR with EBITDA margins above 20% by 2020.
"Gemalto is delighted to welcome new members to its international team. 3M's
Identity Management Business and Gemalto perfectly fit, solving authentication
and identity management pain points across our customer segments, creating
immediate increased differentiation and offering additional long term growth
perspectives", said Philippe Vallée, Gemalto CEO.
Live Audio Webcast and Conference call
Gemalto presentation on this announcement will be webcast in English today at
3pm Amsterdam and Paris time
(2pm London time and 9am New York time).
This listen-only live audio webcast of the presentation and the Q&A session will
be accessible from our Investor Relations web site:
www.gemalto.com/investors
Questions will be taken by way of conference call. Investors and financial
analysts wishing to ask questions should join the presentation by dialing:
(UK) +44 203 367 9454 or (US) +1 855 402 7761 or (FR)
+33 1 7077 0943
The accompanying presentation slide set is also available for download on our
Investor Relations web site.
Replays of the presentation and Q&A session will be available in webcast format
on our Investor Relations web site approximately 3 hours after the conclusion of
the presentation. Replays will be available for one year.
|Investor Relations |Corporate Communication |Media Relations Agency
| | |
| | |
| | |
| | |
| | |
|Winston Yeo |Isabelle Marand |Suzanne Bakker
| | |
|M.: +33 6 2947 0814 |M.: +33 6 1489 1817 |M. : +31 6 1136 8659
| | |
|winston.yeo(at)gemalto.com |isabelle.marand(at)gemalto.com|suzanne.bakker(at)citigateff.nl
| | |
|
|
|Sébastien Liagre
|M.: +33 6 1751 4467
|sebastien.liagre(at)gemalto.com
|
About Gemalto
Gemalto (Euronext NL0000400653 GTO) is the global leader in digital security,
with 2015 annual revenues of ?3.1 billion and customers in over 180 countries.
We bring trust to an increasingly connected world.
Our technologies and services enable businesses and governments to authenticate
identities and protect data so they stay safe and enable services in personal
devices, connected objects, the cloud and in between.
Gemalto's solutions are at the heart of modern life, from payment to enterprise
security and the internet of things. We authenticate people, transactions and
objects, encrypt data and create value for software - enabling our clients to
deliver secure digital services for billions of individuals and things.
Our 14,000+ employees operate out of 118 offices, 45 personalization and data
centers, and 27 research and software development centers located in 49
countries.
For more information visit
www.gemalto.com, or follow (at)gemalto on Twitter.
This communication does not constitute an offer to purchase or exchange or
the solicitation of an offer to sell or exchange any securities of Gemalto.
This communication contains certain statements that are neither reported
financial results nor other historical information and other statements
concerning Gemalto. These statements include financial projections and estimates
and their underlying assumptions, statements regarding plans, objectives and
expectations with respect to future operations, events, products and services
and future performance. Forward-looking statements are generally identified by
the words "expects", "anticipates", "believes", "intends", "estimates" and
similar expressions. These and other information and statements contained in
this communication constitute forward-looking statements for purposes of
applicable securities laws. Although management of the Company believes that the
expectations reflected in the forward-looking statements are reasonable,
investors and security holders are cautioned that forward-looking information
and statements are subject to various risks and uncertainties, many of which are
difficult to predict and generally beyond the control of the Company, that could
cause actual results and developments to differ materially from those expressed
in, or implied or projected by the forward-looking information and statements,
and the Company cannot guarantee future results, levels of activity, performance
or achievements. Factors that could cause actual results to differ materially
from those estimated by the forward-looking statements contained in this
communication include, but are not limited to: trends in wireless communication
and mobile commerce markets; the Company's ability to develop new technology and
the effects of competing technologies developed; effects of the intense
competition in the Company's main markets; challenges to or loss of intellectual
property rights; ability to establish and maintain strategic relationships in
its major businesses; ability to develop and take advantage of new software,
platforms and services; profitability of the expansion strategy; effects of
acquisitions and investments; ability of the Company's to integrate acquired
businesses, activities and companies according to expectations; ability of the
Company to achieve the expected synergies from acquisitions; and changes in
global, political, economic, business, competitive, market and regulatory
forces. Moreover, neither the Company nor any other person assumes
responsibility for the accuracy and completeness of such forward-looking
statements. The forward-looking statements contained in this communication speak
only as of the date of this communication and the Company or its representatives
are under no duty, and do not undertake, to update any of the forward-looking
statements after this date to conform such statements to actual results, to
reflect the occurrence of anticipated results or otherwise except as required by
applicable law or regulations.
--------------------------------------------------------------------------------
[1] Source: Proforma carve-out unaudited financials based on due diligence - 12
months ending June 2016
Press release (PDF) :
http://hugin.info/159293/R/2063188/774176.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Gemalto via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 09.12.2016 - 02:30 Uhr
Sprache: Deutsch
News-ID 511847
Anzahl Zeichen: 11755
contact information:
Town:
Meudon
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 254 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Gemalto to acquire 3M's Identity Management Business"
steht unter der journalistisch-redaktionellen Verantwortung von
Gemalto (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
