France-based digital security solutions provider Oberthur Technologies announced on Tuesday that it would acquire smart card maker NagraID Security SA for an undisclosed sum.
Based in Cheseaux, Switzerland, NagraID is a subsidiary of the Kudelski Group and produces multi-component and other smart cards used in the financial industry and for authentication and identification, using one-time password (OTP) or dynamic card verification values printed on payment cards.
While the terms of the agreement were not disclosed, Kudelski Group CEO André Kudelski said the buyout incorporated an “earn-out-based structure” that would allow his firm to share the upside of the display card market.
“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,” Didier Lamouche, President and CEO of Oberthur Technologies, said in a prepared statement.
The transaction is expected to close in the coming weeks.
With over 6 000 employees worldwide, Oberthur Technologies has more than 50 sales offices.