Gemalto – A Renowned Digital Security Company recently purchased by the Thales Group.
Gemalto is a famous electronic company providing services in the digital security sector. The main two products of the company are software applications and smart cards along with services related to them. Gemalto was formed in 2006 as a result of a merger between two companies, Axalto and Gemplus. In 2019, Gemalto came under the acquisition of the Thales Group and until then it was the biggest producer of SIM cards across the globe. Currently, the company’s headquarters are based in Amsterdam, Netherlands. It operates in more than 45 countries and has plenty of production sites and R&D centers. So, let’s have a look at the parent companies and how they became a single big entity, Gemalto.
The Founding Story of Gemplus
Gemplus was founded in the late 1980s and it started trading in the prepaid phonecards field. In the 1990s words spread about the brand and hence Axalto tied up with Gemplus to create a strong presence in the market and grow its business. Before 1999, Gemplus conducted its business through a french limited partnership called Gemplus SCA but in 1999 it merged with Gemplus Associates and formed Gemplus SA, a joint stock company. The company filed for an IPO in December 2000 and after a few years, it restructured its corporate divisions. During this time, most of the subsidiaries of Gemplus SA were transferred to Gemplus International SA. In 2005, Gemplus acquired a Finland-based company for Setec Oy, and next year it merged with Axalto.
Schlumberger renamed as Axalto
Schlumberger Smart Cards & Terminals renamed the company in 2003 to Axalto to add more versatility to its brand. Schlumberger was a big hit in the chip technology market in 1979 and it developed its first telephone chip card in the 1980s. The company used to establish partnerships with several telecom operators in many nations and started developing a digital era of communication. In the 1990s the company designed its first SIM card which was used for the launch of GSM in Europe.
In the 21st century, the company has made breakthroughs by designing java-based microprocessor cards and smart cards. Long before Axalto merged with Gemplus, the former thrived in the electronics industry creating various products and applications for telecommunication, IT, healthcare, retail, and other sectors. Axalto was spun off as a different company from the parent company Schlumberger for the smart cards and POS terminal activities.
After The Merger
The merger between Axalto and Gemplus took place in 2006. During the next ten years, Gemalto acquired a series of companies in many countries. In Taiwan, it acquired Leigh Mardon’s personalization center, in South Africa, it acquired Multos International and NamITech, in Sweden, it acquired Todos AB, etc. In 2017, the Thales Group showed interest in acquiring Gemalto and as approved by the board of directors the acquisition was completed in 2019. The deal was closed for €4.8 billion. Gemalto today is famous for supplying software solutions, SIM, and managed services in the telecommunication market. The company has around 700 million subscribers spread internationally. Since it also partners with telecom operators, Gemalto has more than 400 telecom operator customers in the world.
Gemalto also delivers EMV cards to several financial institutions after it partnered with Garanti Bank in Turkey. This partnership was established in 2008 after which it rolled out 300,00 Gemalto EMV contactless bank cards. In 2016, the National Commercial Bank of Saudi Arabia also partnered with Gemalto for the same. Gemalto has also rolled out biometrics cards in recent years. The company has significant contributions in the public sector as it provides e-passports, e-driving license, e-government IDs, etc.
The CEO: Philippe Vallee
Since 2016, Philippe Vallee has been serving as the CEO of Gemalto. Before becoming the CEO, he worked as Chief Operating Officer and also in the EVP Telecommunications Business Unit of Gemalto. Philippe Vallee also worked at Gemplus before he became a part of Gemalto. He has a very rich background in marketing, sales, and product management and served at many positions in these units in Asia and Europe.
Annasha Dey is an NIT student, who apart from studying engineering is also a content writer. She has a great interest in photography, writing, reading novels, and travelling as well. She is a foodie who loves socializing and hanging out with her friends. She is also a trained Kathak dancer and a big fashion enthusiast. Dey also loves watching TV series, which includes F.R.I.E.N.D.S. and Big Bang Theory. To be a better writer she prefers to read more