- Email: [email protected]
ERG buys Proton World
ISSN 0965-2590
www.compseconline.com November/December 2001
Vol. 13, No. 4
ERG buys Proton World ERG Group of Australia has bought out its partners in Belgian-based Proton World International (Proton World). To pay for the acquisition, ERG is issuing the former shareholders of Proton World — American Express, Banksys (Belgian banks), Interpay Nederland (Dutch banks) and Visa International – with approximately 75.5 million shares (representing 8.4% of ERG’s capital). In addition, ERG has agreed to pay some A$58.8 million in cash. ERG is raising A$104 million in a rights issue to fund the acquisition. The agreements with American Express and Visa International also provide entitlements to options on ERG shares. The sale agreements call for long-term (5-7 year) service level agreements to be executed by American Express, Banksys and Interpay Nederland. The contracts are expected to generate revenue in excess of A$200 million. Proton World was formed in 1998 as a joint venture between ERG, Banksys, American Express, Interpay Nederland, and Visa International. There are now more than 35 million Protonbased smart cards in circulation and more than 500 banks have deployed the technology.
ERG’s Chief Executive, Mr Peter Fogarty, said the full acquisition of Proton World would enhance ERG’s strengths in the smart card arena. “ERG’s existing MASS technology is the world’s leading transport smart card technology. The combination with Proton Prisma technology means that ERG will now have the ability to deliver full multi-application smart card solutions, including high-level security for the financial services and identity markets.” Proton World’s CEO, Armand Linkens, said: “Proton World has made a name for itself with its security architecture and smart card solutions in the financial industry. Our know-how is very complementary with the achievements of ERG in mass transit. The commonality of vision and cultures of the two companies assure me of an even greater worldwide success of the ERG Group and its subsidiary Proton World in the key markets of transit, finance, mobile telephony and identity.”
contents NEWS HIGHLIGHTS Total deliveries of high value GSM cards for 2001 ranged from 320 to 400m.........3 A US District Judge has ordered Visa Intl and MasterCard Intl to allow member banks to issue rival cards such as American Express...................................3 Infineon Technologies won the Sesame award for the Best Technological Innovation Ask’s C.Ticket contactless paper commuter ticket was voted best application at Cartes 2001......................4 Milan’s mass transit authorities have awarded Ascom of Bern, Switzerland a £50m contract to supply a smart cardbased ticketing system for bus, subway and rail travel in the region..................4,5
CHIP TALK Richard Aufreiter of Utimaco Safeware reveals the technology to fill the gap between biometrics and cryptography ....9
FEATURES DoD rolls out smart ID cards
Contact Shaun Duffy at ERG Group, Tel: +61 8 9273 1879, Email: [email protected]
The US Department of Defense has begun the roll-out of Common Access Cards...............................................10. 11 Digital signatures
FINREAD paves way for secure e-commerce Six terminal manufacturers are racing to provide Europe’s banks with ‘affordable’ smart card readers that can be issued to consumers for remote payments over the Internet. CPS, CyberComm, Ingenico, SCM Microsystems, Wave and Xiring are all working on terminals that will meet the new FINREAD specifications. FINREAD is a consortium led by the French Cartes Bancaires group and supported with funding from the European Commission. Other
members of the consortium are Banksys (Belgian banks), Interpay (Dutch banks), SIZ (German savings banks), Europay, Visa and terminal manufacturer Ingenico. The UK banks have no direct input. In addition to meeting the security requirements of Europe’s bankers, the FINREAD specifications have recently been validated by CEN (the European standards body); this means that FINREAD terminals
Regional governments in Germany are using electronic signatures for civil adminstration...............................11,12,13 Can US banks afford to wait for smart cards? George Wallner, Hypercom chairman, puts the case for biometric fingerprints......................................14,15
REGULARS News in Brief...........................3, 4, 5, 6, 8 Events Calendar......................................7 Viewpoint .............................................16
Continued on page 2...
ISSN 0965-2590/01/$20.00 © 2001 Elsevier Science Ltd. All rights reserved This journal and the individual contributions contained in it are protected under copyright by Elsevier Science Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.
www.compseconline.com November/December 2001
Vol. 13, No. 4
ERG buys Proton World ERG Group of Australia has bought out its partners in Belgian-based Proton World International (Proton World). To pay for the acquisition, ERG is issuing the former shareholders of Proton World — American Express, Banksys (Belgian banks), Interpay Nederland (Dutch banks) and Visa International – with approximately 75.5 million shares (representing 8.4% of ERG’s capital). In addition, ERG has agreed to pay some A$58.8 million in cash. ERG is raising A$104 million in a rights issue to fund the acquisition. The agreements with American Express and Visa International also provide entitlements to options on ERG shares. The sale agreements call for long-term (5-7 year) service level agreements to be executed by American Express, Banksys and Interpay Nederland. The contracts are expected to generate revenue in excess of A$200 million. Proton World was formed in 1998 as a joint venture between ERG, Banksys, American Express, Interpay Nederland, and Visa International. There are now more than 35 million Protonbased smart cards in circulation and more than 500 banks have deployed the technology.
ERG’s Chief Executive, Mr Peter Fogarty, said the full acquisition of Proton World would enhance ERG’s strengths in the smart card arena. “ERG’s existing MASS technology is the world’s leading transport smart card technology. The combination with Proton Prisma technology means that ERG will now have the ability to deliver full multi-application smart card solutions, including high-level security for the financial services and identity markets.” Proton World’s CEO, Armand Linkens, said: “Proton World has made a name for itself with its security architecture and smart card solutions in the financial industry. Our know-how is very complementary with the achievements of ERG in mass transit. The commonality of vision and cultures of the two companies assure me of an even greater worldwide success of the ERG Group and its subsidiary Proton World in the key markets of transit, finance, mobile telephony and identity.”
contents NEWS HIGHLIGHTS Total deliveries of high value GSM cards for 2001 ranged from 320 to 400m.........3 A US District Judge has ordered Visa Intl and MasterCard Intl to allow member banks to issue rival cards such as American Express...................................3 Infineon Technologies won the Sesame award for the Best Technological Innovation Ask’s C.Ticket contactless paper commuter ticket was voted best application at Cartes 2001......................4 Milan’s mass transit authorities have awarded Ascom of Bern, Switzerland a £50m contract to supply a smart cardbased ticketing system for bus, subway and rail travel in the region..................4,5
CHIP TALK Richard Aufreiter of Utimaco Safeware reveals the technology to fill the gap between biometrics and cryptography ....9
FEATURES DoD rolls out smart ID cards
Contact Shaun Duffy at ERG Group, Tel: +61 8 9273 1879, Email: [email protected]
The US Department of Defense has begun the roll-out of Common Access Cards...............................................10. 11 Digital signatures
FINREAD paves way for secure e-commerce Six terminal manufacturers are racing to provide Europe’s banks with ‘affordable’ smart card readers that can be issued to consumers for remote payments over the Internet. CPS, CyberComm, Ingenico, SCM Microsystems, Wave and Xiring are all working on terminals that will meet the new FINREAD specifications. FINREAD is a consortium led by the French Cartes Bancaires group and supported with funding from the European Commission. Other
members of the consortium are Banksys (Belgian banks), Interpay (Dutch banks), SIZ (German savings banks), Europay, Visa and terminal manufacturer Ingenico. The UK banks have no direct input. In addition to meeting the security requirements of Europe’s bankers, the FINREAD specifications have recently been validated by CEN (the European standards body); this means that FINREAD terminals
Regional governments in Germany are using electronic signatures for civil adminstration...............................11,12,13 Can US banks afford to wait for smart cards? George Wallner, Hypercom chairman, puts the case for biometric fingerprints......................................14,15
REGULARS News in Brief...........................3, 4, 5, 6, 8 Events Calendar......................................7 Viewpoint .............................................16
Continued on page 2...
ISSN 0965-2590/01/$20.00 © 2001 Elsevier Science Ltd. All rights reserved This journal and the individual contributions contained in it are protected under copyright by Elsevier Science Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.