Thursday, 18 January 2018

Thales succeeds with €5.6 billion bid for Gemalto

By Chris Kelly, Total Telecom
Tuesday 19 December 17

Thales' offer values Gemalto at €51 per share and has been unanimously approved by Gemalto's board of directors

French technology firm Thales has succeeded in the acquisition of digital security specialist firm Gemalto, according to statements from both companies.   Thales will pay €5.6 billion for Gemalto, including around &euro…

French technology firm Thales has succeeded in the acquisition of digital security specialist firm Gemalto, according to statements from both companies.  

Thales will pay €5.6 billion for Gemalto, including around €800 million in debt. The deal is for an all cash offer, at €51 per share. 

The deal will create the second biggest cyber security business in the world. 

“The acquisition of Gemalto marks a key milestone in the implementation of Thales’s strategy. Together with Gemalto’s management, we have big ambitions based on a shared vision of the digital transformation of our industries and customers. Our project will be beneficial to innovation and employment, whilst respecting sovereign strategic technologies. By combining our talents, Thales and Gemalto are creating a global leader in digital security,” said Patrice Caine, Thales’s Chairman and CEO.

Last week, Gemalto knocked back a €4.3 billion takeover bid from Atos, siting a low capital valuation and difference in the business cultures of the two firms as the reason for the refusal. With Thales, Gemalto seem to have found a more natural fit. 

“I am convinced that the combination with Thales is the best and the most promising option for Gemalto and the most positive outcome for our company, employees, clients, shareholders and other stakeholders. We share the same values and Gemalto will be able to pursue its strategy, accelerate its development and deliver its digital security vision, as part of Thales,” said Philippe Vallée, Gemalto’s CEO. 

The Gemalto board of directors unanimously agreed the Thales offer in principal and has made that recommendation to the company's shareholders. 

 
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