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HID to acquire ID business from De La Rue
Posted on Thursday, 13 June 2019 11:06
HID Global is buying the international identity solutions (international ID) business of De La Rue for GBP 42.00 million in cash.
The transaction, which is slated to complete in the third quarter of 2019, remains subject to regulatory approvals and customary closing conditions.
As part of the deal, the buyer will pick up the vendor’s identity solutions contracts, associated software and passport assembly facilities, among others, located in Malta.
HID will also acquire certain printing contracts of security documents, including visas and birth, death and marriage certificates, as well as the printing services of De La Rue until 2022.
The target delivers identity documents, such as e-passports and machine readable passports for governments worldwide.
International ID works directly with government departments, including ministries of the interior, immigration and police divisions.
The sale of the target division will also strengthen De La Rue’s balance sheet and allow it to invest in other growth areas.
Martin Sutherland, chief executive of the security products manufacturer, noted: “Focusing on the identity-related security features and components is in line with our strategy to transform De La Rue to an asset light and more technology-led business.”
For the financial year ended 30th March 2019, the UK-based group booked revenue GBP 516.60 million, up 12.0 per cent from GBP 461.40 million in the preceding 12 months.
The company’s identity solutions division accounted for 15.2 per cent of the total amount with GBP 78.40 million (FY 2018: GBP 78.90 million).
Stefan Wilding, chief executive of HID, said: “With complementary products, solutions and services that are highly synergistic with HID’s current offerings, De La Rue’s identity solutions business is an excellent strategic fit with our mission to power the trusted identities of the world’s people, places and things.”
Headquartered in Texas, the acquiror manufactures security identity products, including e-passports and e-ID cards, card printers and controllers.
HID operates across the banking and financial, government and healthcare industries and features software such as EasyLobby Visitor Management, which ensures secure visitor access for companies.
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