NFC TIMES Exclusive Insight – French IT services group Atos hopes to bolster its cybersecurity, IoT and payments offers with its €4.3 billion (US$5.07 billion) unsolicited bid to buy struggling France-based smart card and digital security vendor Gemalto.
UPDATE: Atos–which according to chairman and CEO Thierry Breton has long had its eye on Gemalto–is proposing to scoop up the vendor after the latter’s share price had hit a six-year low. Gemalto, which has seen its share value plummet over the past nine months following multiple profit warnings. Atos has bid €46 per share–a 42% premium on Gemalto’s share price as of Dec. 8. Gemalto's board late on Wednesday Paris time rejected Atos' offer, saying that the bid undervalues the company. Atos confirmed late Wednesday that it would continue to pursue the all-cash bid at the €46 per share price, though added that it was open to negotiation. The situation sets up a possible hostile takeover attempt by Atos. END UPDATE.
Following the announcement of the bid late Monday, Gemalto's share price soared Tuesday by 34%, increasing Gemalto’s share price to €45.60, a clear indication that investors believe the acquisition will be consummated.