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Thales has announced the successful acquisition of data and network cyber security specialist Gemalto after a 15-month period of negotiations between the companies.
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Completed in 15 months, the acquisition of Gemalto by Thales for €4.8 billion creates a group on a new scale and a global leader in digital identity and security employing 80,000 people.
The larger Thales will master all the technologies underpinning the critical decision chain for companies, organisations and governments. Incorporating the talent and technologies of Gemalto, Thales will develop secure solutions to address the major challenges faced by our societies, such as unmanned air traffic management, data and network cyber security, airport security or financial transaction security.
Patrice Caine, chairman and CEO of Thales, welcomed the acquisition, saying, "With Gemalto, a global leader in digital identification and data protection, Thales has acquired a set of highly complementary technologies and competencies with applications in all of our five vertical markets, which are now redefined as aerospace; space; ground transportation; digital identity and security; and defence and security."
This combination creates a world-class leader with an unrivalled portfolio of digital identity and security solutions based on technologies such as biometry, data protection, and, more broadly, cyber security.
Thales will thus provide a seamless response to customers, including critical infrastructure providers such as banks, telecom operators, government agencies, utilities and other industries as they step up to the challenges of identifying people and objects and keeping data secure.
The new Thales will cover the entire critical decision chain in an increasingly interconnected and vulnerable world, with capabilities spanning software development, data processing, real-time decision support, connectivity and end-to-end network management.
"These are the smart technologies that help people make the best choices at every decisive moment. The acquisition is a turning point for the group’s 80,000 employees. Together, we are creating a giant in digital identity and security with the capabilities to compete in the big leagues worldwide," Caine explained.
The new business will invest €1 billion a year devoted to self-funded R&D. The group will continue to innovate in its key markets, drawing in particular on its world-class digital expertise in the internet of things, big data, artificial intelligence and cyber security.
Following this acquisition, Gemalto will form one of Thales’ seven global divisions, to be named digital identity and security (DIS). Gemalto will interact with all of the group’s civil and defence customers and will significantly strengthen its industrial presence in 68 countries.
Thales will considerably expand its operations in Latin America (2,500 employees, up from 600), triple its presence in northern Asia (1,980, from 700), south-east Asia (2,500, from 800) and India (1,150, from 400), and North America (6,660 employees, up from 4,600).
Thales generated revenues of €19 billion in 2018 with 80,000 employees in 68 countries.
