IN Groupe begins exclusive negotiations to acquire Idemia Smart Identity

IN Groupe has emerged as the likely buyer of Idemia’s biometrics and identity verification business from Advent. An acquisition would combine global market leaders in physical identity documents and biometric and digital identity, respectively.

The intention of both parties is to create a global leader in identity technology, and create a combined entity with a higher growth trajectory both domestically and internationally, a source with knowledge of the negotiations told Biometric Update.

A March report suggested Idemia’s identity business could fetch a billion euros (US$1.1 billion), but negotiations are currently ongoing. Idemia Smart Identity contributed about 15 percent of the Group’s consolidated revenue of €2.9 billion last year, the source said.

France-based IN Groupe traces its roots back to establishment as the national printing company hundreds of years ago.

The chief national audit body of France, the Cour des Comptes, reviewed IN Groupe’s transition towards providing digital technologies in 2022, and recommended “growth operations externally carried out with the support of the State shareholder enabling it to acquire skills, technologies and new markets;” (as machine translated). The same audit shows IN Group’s balance sheet held €773 million ($860 million today) at the close of 2020, having tripled from €214 million ($238 million) at the beginning of 2015.

“We are looking forward to joining forces with Idemia Smart Identity to create a new global leading player for advanced and secure identity solutions,” says IN Groupe CEO Agnès Diallo in a joint announcement. “This is a unique and transformative milestone for IN Groupe. It is fully aligned with our strategy to consolidate our position in physical and digital identity at a global scale to better serve our clients. Idemia Smart Identity’s teams, technologies and solutions, perfectly complement our own capabilities and I firmly believe that coming together would strongly benefit our customers. It would also positively impact the market as a whole, with the emergence of a new player with unrivalled ability to operate at scale internationally, upholding European values for privacy and security in a sector that is critical for the future of society at large. We would be thrilled to welcome to IN Groupe Idemia Smart Identity’s talented teams and to embark together on the exciting journey ahead.”

IN Groupe’s sole shareholder is the French government, which supports the potential acquisition. The company says acquiring Idemia Smart Identity would help it address the challenge of increasing demand from public and private sector clients for secure identity solutions that protect privacy. It would also allow the combined business to address a trend towards digital identity for service access and meet rising European standards for the digital ID ecosystem.

A prospective deal would strengthen IN Groupe’s presence in Europe, the Middle East and Africa, Latin America and Asia, the announcement says. Sixty percent of IN Groupe’s sales in 2023 were in international markets, and the combined entity would have total sales over €1 billion.

Idemia’s chip design and advanced software can particularly benefit IN Groupe’s secure identity document businesses, the press release notes.

Idemia was split into Smart Identity, Public Security and Secure Transactions divisions at the beginning of 2024, following reports of an attempt to sell a larger portion of the company for up to $4.6 billion. The divisions were given greater autonomy to pursue their growth goals, and a strategic review carried out to assess the options of each.

“Idemia Group continues its solid development trajectory while implementing its ambitious strategy,” comments Idemia Group CEO Pierre Barrial. “We are reaching a decisive milestone with this project to sell Idemia Smart Identity, one of the leading providers of secure identity solutions, to create a market leading player. With €2.5 billion in revenue, 12,500 employees, and 4,000 customers with its Secure Transactions and Public Security divisions, Idemia Group would embark on a new chapter in its history and remain focused on delivering mission critical solutions powered by biometrics and cryptography addressing specific market segments, and accelerating its future growth.”

Antoine Grenier, CEO of Idemia Smart Identity, says his division is delighted to join IN Groupe, with its globally recognized industry experience and expertise. “The acquisition of Idemia Smart Identity by IN Groupe would expedite the growth trajectory we are on,” he says. “I am proud that Idemia Smart Identity, a long-standing pioneer in physical and digital identity solutions, could bring these capabilities to IN Groupe. Together we would accelerate our development and unlock new opportunities to expand our national and international footprint, as well as enhance our expertise and better serve our clients.”

The company’s U.S. operations, including Idemia National Security Solutions and Idemia Identity and Security North America, were subsequently spun off from the main group, and Idemia Smart Identity’s U.S. mobile driver’s license (mDL) business merged with Idemia I&S.

IN Groupe’s work on biometric payment cards and travel biometrics align neatly with Idemia’s key business areas.

The deal is subject to the usual approvals and conditions, and is expected to be completed in 2025.

Article Topics

Advent International  |  biometrics  |  digital identity  |  France  |  IDEMIA  |  Idemia Smart Identity  |  IN Groupe