Thales has completed the acquisition of software security company Gemalto for $5.4 billion.
The acquisition took 15 months and will furnish Thales with a new division, to be named digital identity and security. The company will redefine its divisions as aerospace; space; ground transportation; defense and security; and digital identity and security. Thales projects its yearly revenue to reach $21.4 billion with $1.1 billion devoted to research and development in the wake of the acquisition.
Gemalto was an international company headquartered in Amsterdam, with a presence in 47 countries. The company reported revenues of $3.3 billion last year and has 15,000 employees, 3,000 of them R&D engineers. It focuses on digital identification and data protection in the banking and transportation industries.
After the acquisition, Thales Group will comprise 80,000 employees across 68 countries, the company said. It holds 20,500 patents and two-thirds of the world's aircraft use Thales equipment. The company also reports that it protects 80 percent of the world's banking transactions and secures information systems at 19 of the world's 20 largest banks. Thales will expand its operations in North and South America to 6,600 and 2,500 employees, respectively.
The new digital identity and security division will interact with all of Thales' civil and defense customers. Thales says the acquisition allows the company to cover the entire decision chain from data generation on.
“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," said Thales Chairman and Chief Executive Patrice Caine in a statement. "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.”