FB pixel

Rumored Idemia $4.6B sale could split enterprise, government business

Categories Biometrics News  |  Trade Notes
Rumored Idemia $4.6B sale could split enterprise, government business
 

Another major corporate change could be coming for Idemia, as its U.S. parent is considering selling the global biometrics and digital identity firm, possibly by breaking it up, according to a Reuters report.

Idemia came together in 2017 through the merger of Safran’s identity and security units, including the Morpho brand, with Oberthur Technologies. This followed Advent’s $2.7 billion acquisition of the Safran business.

Advent has approached investment banks as it considers launching an auction later in 2022, a source told Reuters. Bpifrance also has a stake in Idemia.

Now, Thales has reportedly expressed interest in acquiring assets from Idemia in a sale at a valuation of €3 billion to €4 billion (roughly US$3.4 billion to $4.6 billion), though antitrust regulations would limit which parts Thales could bid for. Thales recently confirmed its interest in adding cybersecurity assets, but denied it was in talks with Atos.

Reuters cites a study from Embroker which indicates cybercrime is up by 600 percent during the pandemic as the reasoning behind government stepping up their cyber defenses, increasing the size of one of Idemia’s target markets.

Thales is also partially controlled by the French state, and a 2018 report from the country’s government advised consolidating its cybersecurity industry.

One option would be to separately sell its government business, which is valued at €3 billion ($3.4 billion), from its enterprise divisions, which include SIM card issuance and payments platforms, and is estimated at €1 billion ($1.1 billion). Both sides currently provide biometrics, with border technology contracts and biometric payment cards as prominent examples.

The report also suggests that private equity firms are interested, but that any action is likely to occur after France’s election in April. It further cites Moody’s data indicating Idemia has a heavy debt load, but the company also booked revenues of €2.2 billion ($2.5 billion) in 2020.

Article Topics

 |   |   |   |   |   | 

Latest Biometrics News

 

Airport authorities expand biometrics deployments with Thales, Idemia tech

Biometric deployments involving Thales, Idemia and Vision-Box, alongside agencies like the TSA,  highlight the aviation industry’s commitment to streamlining operations….

 

Age assurance laws for social media prove slippery

Age verification for social media remains a fluid issue across regions, as stakeholders argue their positions to courts and governments,…

 

ZeroBiometrics passes pioneering BixeLab biometric template protection test

ZeroBiometrics’ face biometrics software meets the specifications for template protection set out in the ISO/IEC 30136, according to a pioneering…

 

Apple patent filing aims for reuse of digital ID without sacrificing privacy

A patent filing from Apple for ensuring a presented reusable digital ID belongs to the person holding it via selfie…

 

Publication of ISO standard sets up biometric bias tests and measurement

The international standard for measuring biometric bias, or demographic differentials, is now available for purchase and preview from the International…

 

EU’s EES delayed again, border crossings still lack equipment

The European Union has confirmed that its upcoming biometric travel scheme will be delayed following warnings from several member states…

Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Read This Week

Featured Company

Biometrics Insight, Opinion

Digital ID In-Depth

Biometrics White Papers

Biometrics Events