Atos, a €13 billion IT company assisting enterprises for digital transformation, is aiming to buy digital security company Gemalto, for approximately €4.3 billion.
The company has submitted the proposal to Gemalto board.
The proposed transaction will create a leading group in cybersecurity technologies and digital services. Gemalto is a leading global technology company with presence in digital cyber security, IoT and payment businesses.
Atos has earlier acquired Siemens Information Systems with 33,000 employees, Bull with 9,300 employees and Xerox ITO with 9,600 employees.
“We believe that a combination of Atos and Gemalto would result in enhanced global leadership in cybersecurity, digital technologies and services and in the strengthening of our positioning as a leading European payment services provider,” said Thierry Breton, chairman and CEO of Atos.
Gemalto financials
Amsterdam-based Gemalto posted revenue of €751 million in third quarter showing no signs of growth.
Gemalto generated Q3 revenue of €481 million (+7 percent) from Payment & Identity segment, €269 million (–2 percent) from Mobile segment, €257 million (+15 percent) from Platforms & Services and €493 million (–2 percent) from Embedded software & Products.
The combination of Atos and Gemalto will lead to global leadership in cybersecurity and digital technologies and services, with highly complementary offerings, technologies, and commercial footprint.
The combination will lead to the creation of a top security company with total revenue amounting to €1.5 billion. Gemalto’s offerings in identity and access management, data encryption and crypto management complement Atos’ capabilities in Artificial Intelligence (AI), Big Data, High Performance Computers, and cloud orchestration.
Gemalto earlier said removable SIM business continues to decline at double digit rates and the mobile ecosystem takes time to prepare for next generation connectivity. There will be slow normalization of US EMV market demand. There will be an increasing demand for Data Protection while Authentication moves towards a cloud model. There will be continuing expansion of the Internet of Things (IoT).
