Thales completes billion-dollar Gemalto deal

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After 15 months of work, Thales has now completed its acquisition of Gemalto for $5.38 billion.

The new company says it will tackle modern problems and offer modern solutions to challenges like air traffic management, data and network cybersecurity, airport security and financial transaction security.

The new Thales, as the company calls it, will cover the complete critical decision chain, with capabilities from software development, through data processing and real-time decision support, to connectivity and end-to-end network management.

It will put aside $1.12bn for research and development a year, looking to come up with new solutions in its key markets like Internet of Things, Big Data, Artificial Intelligence and Cybersecurity.

A total of 80,000 people will be working for the new company now. The research and development department will count 3,000 researchers and 28,000 engineers.

“Today the Group has become a giant laboratory inventing the world of tomorrow, with a portfolio of 20,500 patents, of which more than 400 new ones were registered in 2018,” the company said.

Gemalto will be transformed into one of Thales’ seven global divisions and will take the name of Digital Identity and Security (DIS). It will hire new people (quadruple its Latin America workforce, triple its Northern Asia presence and almost double its North America presence) interact with the company’s civil and defence customers in 68 countries.

"With Gemalto, a global leader in digital identification and data protection, Thales has acquired a set of highly complementary technologies and competencies with applications in all of our five vertical markets, which are now redefined as aerospace; space; ground transportation; digital identity and security; and defence and security,” said Patrice Caine, Chairman and CEO, Thales.

“These are the smart technologies that help people make the best choices at every decisive moment. The acquisition is a turning point for the Group's 80,000 employees. Together, we are creating a giant in digital identity and security with the capabilities to compete in the big leagues worldwide."

Image source: Shutterstock/MaximP