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04/2019

GEMALTO acquired by THALES

NETHERLANDS IT Services / Consulting & Integration / Cybersecurity Services EV €1–10bn

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.

As a reminder, Gemalto had previously acquired Safenet in 2014 as part of its expansion strategy.

GEMALTO, which reported an EBITDA margin of [members only] in 2018, is valued in this transaction at an EV/EBITDA multiple of 10x–18x, representing a discount to the average currently observed in the TMT (Tech, Media, Telecom) sector (14.6x).

-> 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

€1–10bn

Equity Value

[members only]

Multiples

EV / Revenue

1x–3x

EV / EBITDA

10x–18x

EV / EBIT

10x–18x

Historical Financials (EUR)

Year
Rev
EBITDA
EBIT
2018
€1–10bn
€250–500M
€250–500M
2017
€1–10bn
€250–500M
€250–500M

Other operations with GEMALTO

Other operations with GEMALTO

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
08/2014GEMALTOSAFENETUNITED STATESCybersecurity Services

REFERENCES

Valuation range: EV €1–10bn

Revenue range: €1–10bn

EBITDA range: €250–500M

EV/Revenue range: 1x - 3x

EV/EBITDA range: 10x - 18x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of GEMALTO by THALES are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Acquirer: thales