Thales reports costs and synergies of integrating Gemalto into DIS
The integration of Gemalto and disposal of its GP HSM businesses has led Thales SA to update its 2019 forecast, calling for the new digital identity and security (DIS) business which includes Gemalto to book organic sales growth for its biometric and other technologies of between 0 and two percent.
Costs from the integration following the €4.8 billion acquisition are expected to reduce EBIT earnings by €60 million (US$67.8 million) in fiscal 2019 and another €30 million to €40 million next year. THE DIS unit is expected to earn €240 million to €260 million from April 2019 to December 2019.
Overall, Thales expects to receive orders for slightly more than €18 billion ($20.3 billion), with EBIT revenues between €1.98 billion and €2 billion ($2.23 billion to $2.26 billion). The integration is expected to generate €120 million in run-rate cost synergies, including €30 million from its GP HSM divestment.