France-based Gemalto has announced plans to acquire U.S.-based data security firm SafeNet in a cash and debt deal worth $890 million, its biggest acquisition since Gemalto was created in 2006 with the merger of what was then the two largest smart card companies, Gemplus and Axalto.
France-based Gemalto, the largest supplier of NFC SIMs globally, says it is not scaling back its projections for shipments of the cards this year, despite delays in orders by European mobile operators and other factors, such as host-card emulation.
France-based vendor Gemalto Thursday confirmed its growth projections for 2014 and its longer-term forecast for 2017, despite the recent announcements of support for host-card emulation by Visa and MasterCard Worldwide.
NFC Times Exclusive–People on the Move: France-based vendor Gemalto has completed internal changes to its corporate structure, creating a separate unit for platforms and services and one for smart card products and appointing executive Philippe Vallée as chief operating officer.
NFC Times Exclusive: France-based Gemalto today reported higher revenue in the third quarter for its mobile-payments platforms as well as increased shipments of NFC SIMs and dual-interface banking cards.
NFC Times Exclusive Analysis: France-based Gemalto has set an ambitious goal of doubling its operating profits by 2017, and the ramping up of trusted service management business is key to hitting that objective.
France-based Gemalto is forecasting double-digit growth in revenue this year, following a strong 2012, in which it reported gains in both sales and profit and the first significant returns for its trusted service management business.
Gemalto CEO Olivier Piou predicted the France-based vendor would begin to see substantial recurring revenue from its trusted service management business starting in 2014 as mobile payment starts to roll out globally over the next three to five years.
Gemalto has acquired the mobile-payment platform of big Swedish telecoms equipment maker Ericsson, which will deepen Gemalto’s already strong connections to mobile operators offering payment and other mobile-commerce services.
Israel-based On Track Innovations reported new orders for its NFC and contactless readers in North America, along with the first shipments of its NFC-enabled Wave attachment, driving higher revenue, though the vendor’s quarterly losses continued.
U.S.-based Identiv reported higher revenue and narrowed losses for the second quarter, predicting a breakeven or positive result by the end of the year, as the company’s restructuring program draws to a close.
NFC Times Exclusive: Westpac New Zealand’s product chief told NFC Times he believes host-card emulation will reduce costs and increase flexibility, while ensuring the bank can use its own branded wallet.
NFC Times Exclusive: With interest in host-card emulation continuing to grow and SIM-based NFC rollouts in need of a boost, mobile operators and their global trade association, GSMA, are pushing for significant cuts in the cost and complexity of TSMs and lowering other hurdles that have discouraged service providers from provisioning their applications on SIM cards.
U.S.-based Broadcom did not mention NFC in its recent conference call with analysts following release of its second quarter results, in which it announced cuts to its global workforce of 20% by exiting the baseband mobile processor business.
A group of former top managers in Visa’s mobile program have formed a start-up that plans to use NFC and BLE to deliver coupons, rewards and other offers to consumers in stores, using the branded apps of retailers or other marketers.
Transport for London today announced it would launch acceptance for open-loop bank cards and other contactless payment on its heavily traveled London Underground and other modes of transit in September, while the UK’s largest mobile operator, EE, announced customers could begin to tap their NFC phones to pay fares at the same time.
NXP Semiconductors said sales in its emerging ID business–mainly made up of its NFC chips–increased by 22% in the second quarter, compared with the first quarter, and CEO Richard Clemmer insisted the chip maker’s secure element business would continue to remain a strong contributor.