August 21, 2014
Oberthur Technologies, which creates digital-security solutions for the mobility market, recently announced the acquisition of NagraID Security. The company will acquire a 100% equity stake in NagraID from the Kudelski Group and NagraID’s management. NagraID Security develops and markets powered display cards for secure access to the cloud. These cards are used by companies operating in the field of financial payments, authentication and identification. The cards are useful in cases of authentication through one-time password (OTP) or dynamic card-verification value.
Oberthur Technologies has a big presence in the payment, telecommunication and identity markets. It offers end-to-end solutions in the fields of smart transactions, mobile financial services, machine-to-machine, digital identity, and transport and access control. Oberthur has an international network serving clients in 140 countries. Over the years, it has made several advancements in a variety of technologies, including smart cards and contactless payments.
Thanks to the acquisition of NagraID Security’s exclusive powered display card technology, OT is making a significant move on the very competitive payment card market, and in particular helping to reduce fraud for all card non-present transactions, said Didier Lamouche, president and CEO of Oberthur Technologies, in a press release. Furthermore, the acquisition will enrich OT’s offering to financial institutions. I am very confident that the talented teams of NagraID Security will contribute to our ambitious development strategy.
The Kudelski Group develops digital-security and convergent-media solutions for delivering digital and interactive content. Its technologies find use in a range of services and applications requiring access control and rights management. The company’s offerings help secure content owners’ and service providers’ revenues from digital television and applications across broadcast, broadband and mobile delivery networks. The company also provides technology in the area of access control pertaining to managing people or getting vehicles to sites and events.
The earn-out-based structure of the sales agreement allows Kudelski Group to share the upside of the display card market, while relying on a strong industrial partner, said Andre Kudelski, president and CEO of the Kudelski Group. We think Oberthur Technologies is well-placed to lead NagraID Security and are pleased for the NagraID Security team.
NagraID produces multicomponent and other forms of complex cards for the security and identification industry. It has an exclusive R&D team working toward providing advanced design, development and industrialization capabilities for authentication solutions.
Oberthur has a dedicated facility in the U.S. for personalizing and fulfilling orders for EMV chip cards and traditional magnetic-stripe credit and debit cards. These electronic chip cards are becoming more important in the U.S., particularly after high-profile credit-card breaches whose victims include retailers Target, Supervalu and Michaels Stores. NagraID’s product portfolio includes six-digit powered display cards integrated with 12-button touch keypads without losing the compact form factor.
The acquisition clearly hints that Oberthur might soon come out with an upgraded form of chip-based cards, adding an extra layer of security.