IDEMIA has announced substantial structural changes that have reorganized the company into three distinct Divisions: IDEMIA Secure Transactions (IST), which is focused on payment and connectivity technologies; a security- and travel-focused IDEMIA Public Security (IPS) Division; and IDEMIA Smart Identity (ISI), which is focused on physical and digital ID solutions.
The announcement comes almost two years after a Reuters report revealed unannounced plans to sell IDEMIA on the part of its parent company, Advent. The effort was reportedly being organized with help from Goldman Sachs and Rothschild, and Thales was considered a potential buyer.
That initial report came just ahead of turmoil in the global markets as inflation and rising interest rates began to take a toll, leading to a more unfavorable market landscape for major M&A deals. Nevertheless, in September of 2022 Advent reportedly still maintained a price target of about €3 billion for IDEMIA’s biometrics and ID business, and an additional €1 billion for its SIM card operations. Analysts at the time believed that anti-trust concerns might lead Advent to sell IDEMIA in parts, rather than as an entire business entity.
In announcing the new structural changes to the IDEMIA Group, the company highlighted its “ability to perform in fast-evolving markets and pursue a strong sustainable growth trajectory, both in terms of sales and profitability,” noting that its revenues in 2023 amounted to almost €2.9 billion, with EBITDA over €630 million.
“Over the past few years, the Group has clearly demonstrated its ability to perform and confirmed its change of dimension and an acceleration in growth and leadership,” said IDEMIA Group President and CEO Pierre Barrial. “Today’s announcements demonstrate IDEMIA positioning the company for the future opportunities generated by the transformation of our industry.”
The restructuring comes with some leadership changes. IDEMIA’s new Secure Transactions Division will be headed by Philippe Oliva, who comes to the company from a previous position as Co-CEO of Atos’s Eviden Business. He has also served in previous managerial roles with Eutelsat and IBM.
IDEMIA Public Security, meanwhile, will be headed by Matthew Cole, who previously served as the EVP of IDEMIA’s Public Security & Identity Business Unit. And IDEMIA’s former VP of the Public Security & Identity Business Unit for the Europe Region, Antoine Grenier, is now the head of IDEMIA Smart Identity.
February 2, 2024 – by Alex Perala