Gemalto Acquires Multos Business From Keycorp

AMSTERDAM, Netherlands, Sep 01, 2008 (BUSINESS WIRE) -- Regulatory News:

Gemalto (Euronext NL0000400653 - GTO), the world leader in digital security, today confirmed that it has completed the acquisition of Keycorp's smart card business, the leading fabless provider of MULTOS(TM) products and services to the Financial Services and Government sectors, and of Multos Ltd, the company that operates the remote activation service and high-security facility that is at the center of the MULTOS security architecture. Gemalto is paying 25.7 million Australian dollars (approximately 15 million Euros, or 22 million US dollars) for Keycorp's smartcard business assets, IP portfolio, trademarks and Multos Ltd.

The assets acquired include Keycorp's implementation of the highly secure MULTOS smart card operating system, the MULTOS brand, the associated patents and the Key Management Authority (KMA) that manages MULTOS card activations worldwide. Approximately 40 MULTOS experts will join Gemalto, mostly based in Australia and UK. The acquisition will contribute over 15 million of annual revenues to the Secure Transactions and Government Programs segments of Gemalto on an annual basis, with over half of the revenues coming from Asia.

MULTOS was previously owned by Mastercard Worldwide through Mondex, and is promoted by the Maosco consortium, which includes Infineon, Samsung, Dai Nippon Printing and Thales in its membership. MULTOS was the first smartcard operating system to receive the highest security certification possible, ITSEC E6 High / EAL6+.

"We will continue to develop and actively promote MULTOS in the payment and ID world" commented Philippe Cambriel, Executive Vice President for Secure Transactions. "In particular, for the high-end and multi-application segments of EMV payment cards, MULTOS fully complements our Java product and services range to provide a comprehensive portfolio. It extends our base of blue chip banking customers, and also brings a highly recognized secure post-issuance service for banking applications, with proven efficiency, scalability and value".

Olivier Piou, Gemalto Chief Executive Officer, added: "This important bolt-on acquisition reinforces our software and services offering across Gemalto business lines. It will allow Gemalto to leverage its large installed base of intelligent devices with a commercially-demonstrated highest-security post-issuance activation service, which will be critical for example in mobile payment and NFC (Near Field Communication) applications. The timing is also right: the turn-around of Secure Transactions has been successfully completed, the segment posted strong results in the first half 2008, and it is now operating on strong foundations, ready to pursue the next opportunities."

About Keycorp

Keycorp is a leading provider of complete secure electronic transaction solutions from multipurpose smartcards and payment solutions to fleet services comprising asset management, help desk support, training and consulting.

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