Thales Updates Fiscal Prospects After Acquisition of Gemalto

“This acquisition represents a powerful accelerator of the strategy we have been implementing since 2015; by providing a unique range of digital technologies and skills, it strengthens the differentiation of our solutions and positions us as partner in the digital transformation of our customers.” – Patrice Caine, CEO, Thales

In the wake of its acquisition of Gemalto, Thales has updated its fiscal projections for the year.

The company says its Digital Identity and Security business should see an EBIT of somewhere between €240 million and €260 million for 2019. It also anticipates run-rate cost synergies of €120 million, which is near the top of its initially announced range.

Commenting on the prospects in a statement, Thales CEO Patrice Caine said that the Digital Identity and Security business unit’s refined EBIT reflects “a significant EBIT increase” thanks to the acquisition of Gemalto, adding later that “there is tremendous enthusiasm for what Gemalto brings to all our businesses.”

Having first made its acquisition offer well over a year ago, Thales went on to face a series of regulatory hurdles after the European Commission announced it would investigate the antitrust implications of the Gemalto merger. Ultimately, Thales agreed to divest itself of its Hardware Security Module business in order to avoid any anti-competition issues.

Nevertheless, Caine now says the acquisition “allows us to create a global leader in the digital security market, responding to the needs of the most demanding customers as they step up to the challenges of identifying people and objects and keeping data secure.”

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June 14, 2019 – by Alex Perala