- Email: [email protected]
Hypercom to acquire thales' e-transactions business
NEWS ...continued from front page • Near Field Communication (NFC) technology spurs the convergence of mobile and payment – In 2008, smart card manufacturers, along with wireless carriers and banks will push to develop phones that use NFC. Those three industries will look to finalise a standard that will allow wireless subscribers to use their GSM phones for payment. • ID & Security/Homeland Security Presidential Directive – HSPD-12 will come into full effect in 2008 requiring all federal government employees to have microprocessor chip cards for access to facilities and computer systems. Contact: Leana Benson at Oberthur Card Systems, Tel: +1 310 868 1318, Email: [email protected]
acquisition
Hypercom to acquire Thales’ e-transactions business
H
ypercom Corporation has entered into negotiations with Thales to acquire the company’s e-transactions business, which provides fixed, portable and mobile payment terminals, as well as integrated EFT solutions, unattended payment devices and secure PIN Pads for ATMs. If successful, the proposed combination would result in the third largest provider of electronic payment solutions and services in the world, the companies claim. Thales’ e-transactions business line is a major provider of secure card payment solutions in France, Germany, the United Kingdom, Spain, Belgium and Sweden, and currently is a profitable business line of Thales Group’s Security Solutions & Services Division, with unaudited proforma, consolidated revenues for the first three quarters of 2007 of US$142 million. Hypercom intends to purchase the e-transaction business line of Thales for US$120 million in cash with a potential earn out of up to an additional $30 million based upon the combined companies’ performance in 2008. Hypercom has provided Thales with a binding offer on these terms. Hypercom plans to finance the transaction with US$60 million of the company’s existing
January 2008
cash, combined with a US$60 million investment from Francisco Partners. “The e-Transactions business line of Thales is focused on high security electronic transaction solutions and is complementary in many ways, providing additional revenue with cost and technology synergies which we believe is a financially and operationally compelling combination,” said Philippe Tartavull, the new CEO and president of Hypercom Corporation (Tartavull joined Hypercom in February 2007, and had been serving as president and COO). Contact: Scott M. Tsujita at Hypercom, Tel: +1 602.504.5161, Email: [email protected]
id
Less than 1% of US federal employees have HSPD-12 ID card
T
here is still a long way to go if US government agencies are to meet the 27 October 2008 deadline for issuing secure identification cards under Homeland Security Presidential Directive 12 (HSPD-12 – see box). According to new figures by The Office of Management and Budget less than 1 percent (0.8%) of more than 4.33 million federal employees and less than 1 percent (0.9%) of the 1 million contractors who need the secure credentials have them, although a significant increase is expected over the coming months. The figures show a small increase in the percentage of employees and contractors with HSPD-12 cards, the OMB said. Karen Evans, OMB’s administrator for e-government and information technology, said that she expects the number of cards agencies issue to employees and contractors to significantly increase. According to the OMB’s figures, agencies reported that 36 757 employees and 9895 contractors have PIV cards. Meanwhile, just under 56% percent, or 2.4 million, of employees and 43%, or 476 320, of contractors have completed National Agency Checks with Inquiries (NACI). The Labor Department has made the most progress among the large agencies by issuing 60% of its employees’ HSPD-12 credentials. The GSA expects a large increase of employees applying for credentials.
IN BRIEF • Sony has developed a bioplastic version of its FeliCa contactless smart card that can be used for photo identification cards and other applications that involve printing. Sony uses a proprietary additive to strengthen the plantderived plastic and covers the card with a thin sheet of petroleum-derived plastic on which photos and lettering can be clearly printed. Plant-derived plastic accounts for 46% of the total weight of the new card, excluding the electronics. Sony will i ntroduce the new cards for student and teacher IDs at an affiliated technical school in the spring. Meanwhile, the company intends to work to modify the bioplastic to accommodate the holographic patterns and contact-type smart-card chips of credit cards and cash cards. • Joe Grillo has joined the board of directors of Colorado-based XceedID. Grillo’s most recent industry position was as CEO for Assa Abloy Global Technologies Division where he was responsible for approximately US$800 million in annual business across three divisions including HID, Hospitality and Identification. Earlier in his career Grillo held numerous positions with HID, ultimately as president and CEO, building the company’s proximity card and reader business during its highest growth years. He also previously held the position of president for the Security Industry Association. • National Bank of Canada has announced that it has completed its first national and international transactions with its new credit card which incorporates smart card technology. The purchases were made at POS terminals equipped to handle the new National Bank MasterCard embedded with a chip. A pilot project to be launched in 2008 will help prepare and support the first group of bank clients who are switched over to the new smart card technology. Over the next few years, National Bank will gradually be replacing its clients’ credit and debit cards with PIN-enabled smart cards. In 2008, pilot projects are expected to take place in KitchenerWaterloo, Ontario and Saint-Jerome, Quebec to test the interoperability of the smart card. • In Canada, the security-enhanced Ontario driver’s licenses are now ready for circulation. The Ontario Ministry of Transportation, together with Giesecke & Devrient (G&D) has launched the next generation of Ontario driver’s licence, claimed to be one of the most secure cards in North America. The licence was designed to enhance the integrity of the card, through features that prevent product tampering or counterfeiting. The Ministry and G&D will continue to incorporate new security features over the life of the program.
Card Technology Today
3
acquisition
Hypercom to acquire Thales’ e-transactions business
H
ypercom Corporation has entered into negotiations with Thales to acquire the company’s e-transactions business, which provides fixed, portable and mobile payment terminals, as well as integrated EFT solutions, unattended payment devices and secure PIN Pads for ATMs. If successful, the proposed combination would result in the third largest provider of electronic payment solutions and services in the world, the companies claim. Thales’ e-transactions business line is a major provider of secure card payment solutions in France, Germany, the United Kingdom, Spain, Belgium and Sweden, and currently is a profitable business line of Thales Group’s Security Solutions & Services Division, with unaudited proforma, consolidated revenues for the first three quarters of 2007 of US$142 million. Hypercom intends to purchase the e-transaction business line of Thales for US$120 million in cash with a potential earn out of up to an additional $30 million based upon the combined companies’ performance in 2008. Hypercom has provided Thales with a binding offer on these terms. Hypercom plans to finance the transaction with US$60 million of the company’s existing
January 2008
cash, combined with a US$60 million investment from Francisco Partners. “The e-Transactions business line of Thales is focused on high security electronic transaction solutions and is complementary in many ways, providing additional revenue with cost and technology synergies which we believe is a financially and operationally compelling combination,” said Philippe Tartavull, the new CEO and president of Hypercom Corporation (Tartavull joined Hypercom in February 2007, and had been serving as president and COO). Contact: Scott M. Tsujita at Hypercom, Tel: +1 602.504.5161, Email: [email protected]
id
Less than 1% of US federal employees have HSPD-12 ID card
T
here is still a long way to go if US government agencies are to meet the 27 October 2008 deadline for issuing secure identification cards under Homeland Security Presidential Directive 12 (HSPD-12 – see box). According to new figures by The Office of Management and Budget less than 1 percent (0.8%) of more than 4.33 million federal employees and less than 1 percent (0.9%) of the 1 million contractors who need the secure credentials have them, although a significant increase is expected over the coming months. The figures show a small increase in the percentage of employees and contractors with HSPD-12 cards, the OMB said. Karen Evans, OMB’s administrator for e-government and information technology, said that she expects the number of cards agencies issue to employees and contractors to significantly increase. According to the OMB’s figures, agencies reported that 36 757 employees and 9895 contractors have PIV cards. Meanwhile, just under 56% percent, or 2.4 million, of employees and 43%, or 476 320, of contractors have completed National Agency Checks with Inquiries (NACI). The Labor Department has made the most progress among the large agencies by issuing 60% of its employees’ HSPD-12 credentials. The GSA expects a large increase of employees applying for credentials.
IN BRIEF • Sony has developed a bioplastic version of its FeliCa contactless smart card that can be used for photo identification cards and other applications that involve printing. Sony uses a proprietary additive to strengthen the plantderived plastic and covers the card with a thin sheet of petroleum-derived plastic on which photos and lettering can be clearly printed. Plant-derived plastic accounts for 46% of the total weight of the new card, excluding the electronics. Sony will i ntroduce the new cards for student and teacher IDs at an affiliated technical school in the spring. Meanwhile, the company intends to work to modify the bioplastic to accommodate the holographic patterns and contact-type smart-card chips of credit cards and cash cards. • Joe Grillo has joined the board of directors of Colorado-based XceedID. Grillo’s most recent industry position was as CEO for Assa Abloy Global Technologies Division where he was responsible for approximately US$800 million in annual business across three divisions including HID, Hospitality and Identification. Earlier in his career Grillo held numerous positions with HID, ultimately as president and CEO, building the company’s proximity card and reader business during its highest growth years. He also previously held the position of president for the Security Industry Association. • National Bank of Canada has announced that it has completed its first national and international transactions with its new credit card which incorporates smart card technology. The purchases were made at POS terminals equipped to handle the new National Bank MasterCard embedded with a chip. A pilot project to be launched in 2008 will help prepare and support the first group of bank clients who are switched over to the new smart card technology. Over the next few years, National Bank will gradually be replacing its clients’ credit and debit cards with PIN-enabled smart cards. In 2008, pilot projects are expected to take place in KitchenerWaterloo, Ontario and Saint-Jerome, Quebec to test the interoperability of the smart card. • In Canada, the security-enhanced Ontario driver’s licenses are now ready for circulation. The Ontario Ministry of Transportation, together with Giesecke & Devrient (G&D) has launched the next generation of Ontario driver’s licence, claimed to be one of the most secure cards in North America. The licence was designed to enhance the integrity of the card, through features that prevent product tampering or counterfeiting. The Ministry and G&D will continue to incorporate new security features over the life of the program.
Card Technology Today
3