GEMALTO
Acquired by
THALES
GEMALTO acquired by THALES
Target
GEMALTO
Acquirer
THALES
Context
Thales successfully executed the acquisition of Gemalto, a premier specialist in digital identity and security. This strategic combination, finalized over a rapid fifteen-month period, culminates in the creation of an entity with a formidable global workforce of approximately 80,000 employees. The structural mechanics of the deal established a robust foundation for the acquiring entity to fully integrate expansive operations and specialized cybersecurity frameworks into its broader organizational matrix. The strategic rationale underpinning this acquisition is deeply rooted in the ambition to forge an absolute global leader in digital identity and security. By absorbing an unparalleled portfolio of biometrics and data protection capabilities, the organization significantly augments its technological arsenal. This synergy directly addresses the escalating global demand for secure solutions across vital infrastructure sectors, enabling comprehensive mastery over critical decision chains in domains ranging from drone traffic management to highly sensitive financial transactions. Furthermore, the integration bolsters the combined entity's innovation engine, supported by a substantial research and development allocation of one billion euros, thereby accelerating advancements in artificial intelligence, big data, and connected devices.
GEMALTO, which reported an EBITDA margin of LOGIN in 2018, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN discount to the average currently observed in the TMT (Tech, Media, Telecom) sector (13.8x).
Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.
-> Deep-dive in TMT (Tech, Media, Telecom) market trends
Target
Gemalto is a global leader in digital security, providing solutions that enable secure, connected experiences for users worldwide. The company operates at the "edge" of the network, specializing in embedded software, portable secure elements, and identity management technologies found in consumer devices, banking cards, and network-connected terminals. Its value proposition is built upon ensuring privacy, security, and trust for the end-user, facilitating the transition to a digital-first economy where mobile and connected devices are the primary interfaces for commercial and governmental interactions. The company’s expertise lies in developing highly reliable security hardware and software that can withstand sophisticated threats while maintaining a seamless user experience. With a comprehensive suite of authentication and identity management tools, Gemalto serves the banking, telecommunications, and enterprise sectors, focusing on protecting user identities and facilitating secure transactions on a global scale.
Ent. Value
LOGIN
Equity Value
LOGIN
Multiples Analysis
EV / Revenue
LOGIN
EV / EBITDA
LOGIN
EV / EBIT
LOGIN
Historical Financials (EUR)
Other operations with GEMALTO
| Date | Acquirer | Target | Country | Sector | Deal Context |
|---|---|---|---|---|---|
| 08/2014 | GEMALTO | SAFENET | UNITED STATES | IT Services | Gemalto has signed a definitive agreement to acquire 100% of the share capital of SafeNet from Vector Capital. The transaction represents a full ownership transfer, bringing the specialized data protection company under Gemalto’s operational umbrella to form an integrated security powerhouse. The acquisition is strategically designed to bridge the security gap between the "edge" of the network—where Gemalto holds market leadership—and the "core" of the network, where SafeNet provides critical data and application protection. By combining portfolios, the combined entity creates a complete end-to-end security infrastructure. The rationale centers on the increasing need for organizations to secure their data as they transition to cloud and digital environments. This move significantly reinforces Gemalto’s Identity and Access Management (IAM) capabilities and provides a platform to accelerate deployment of advanced security solutions within the Enterprise and Government sectors. The transaction is structured as an all-cash acquisition, self-funded through a combination of existing cash reserves and the drawdown of long-term credit facilities. The acquisition is intended to remain accretive to earnings upon completion, maintaining a strong financial position for the combined group. |
REFERENCES
Authors: mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).
Press release: view release
Acquirer: thales