Smart-card companies Axalto and Gemplus, both of which have made established marks in the security controls as well as the financial transactions marketplaces are getting together.
The boards of each company have unanimously approved the merger, which is to be structure as an Axalto exchange offer for Gemplus, at two Axalto shares for 25 Gemplus shares.
According to a statement from the companies, the distribution of shares means approximately 163 million Euros based on the current number of outstanding Gemplus shares. Gemplus' largest shareholders, the Texas Pacific Group and the Quandt family, each have agreed to contribute their shares prior to the launch at the same exchange ratio.
The combination of Gemplus and Axalto would create a combined 2005 pro-forma revenue of $2.1 billion in U.S. dollars (1.8 billion Euros), and will create a company that has operations in more than 50 countries, with some 11,000 employees.