Shareholders will meet in Amsterdam to vote on the propoosed merger between Axalto and Gemplus, the two dominant smart card providers in the world. According Axalto documents, the merger rationale includes:
In an industry fragmented and having matured, ready for consolidation, the Company and Gemplus have decided to seize the first mover advantage and to select each other as their best partner for leveraging the industry growth that they both see ahead.
By doing so, the Company and Gemplus combine
- their Sales & Marketing coverage for superior customer service,
- their Research & Development extensive capabilities for innovation and new product deployment,
- their best practices, combined volume and worldwide presence to improve their production efficiencies and their supply chain, to enable their suppliers to optimize their manufacturing processes, and overall reduce their overhead ratios.
By doing so, the Company and Gemplus aim at extending their value propositions to their customers, at redefining what their industry and themselves can offer in terms of secure trusted platforms and products, at developing and promoting new standards more rapidly for the new applications of their technologies, and overall at bringing new advanced convenient trusted products and capabilities to the world consumers and citizens.
By doing so, the Company and Gemplus aim at improving significantly their returns to shareholders compared to what each of their companies would have done individually, and at providing significant additional career and development opportunities for their employees.
Click here for supporting documentation