De La Rue exits authentication business with $393M acquisition by Crane NXT

Crane NXT, a micro-optics and security systems manufacturer based in the United States, has announced the acquisition of De La Rue’s authentication business for 300 million pounds (approximately US$393 million).

De La Rue Authentication Solutions provides software for businesses and governments, along with physical security tokens and ID documents. The company has delivered authentication solutions in 80 countries, according to the announcement.

The deal expands Crane NXT’s portfolio with security technologies for identity documents and credentials. It also gives Crane NXT De La Rue’s solutions for tracking and authenticating items across global supply chains, which the acquiring company says will complement its own growing authentication business.

“The acquisition of De La Rue Authentication Solutions accelerates our strategy as a market leader in providing trusted technology solutions that secure, detect and authenticate our customers’ most valuable assets,” says Crane NXT President and CEO Aaron W. Saak in the company announcement. “Protection from counterfeiting and illicit trade is a priority for governments and leading commercial product brands. This acquisition expands our technology capabilities and will drive profitable growth in new markets.”

De La Rue’s authentication unit reported about $130 million in revenue with an EBITDA margin of approximately 20 percent. Its currency business is not included in the transaction. Crane NXT anticipates a double-digit return on invested capital within five years, on growth in De La Rue’s business plus synergies.

The transaction is subject to the usual closing conditions.

“We are delighted to reach agreement with a company with the stature of Crane NXT, with its complementary strengths, and are confident that the Authentication Division will continue to build on the considerable successes that it has achieved over the last ten years,” says De La Rue Chairman Clive Whiley.

De La Rue’s Citizen Identity division was acquired by HID Global in 2019.

Article Topics

acquisitions  |  authentication  |  biometrics  |  Crane NXT  |  De La Rue  |  identity document