12th Jun 2019 09:28
(Alliance News) - De La Rue PLC on Wednesday said it will sell its International Identity Solutions business for GBP42 million in cash to HID Corporation Ltd.
HID will acquire currency and authentication provider De La Rue's passport assembly facilities in Malta, as well as international identity solutions contracts and associated software.
HID will acquire printing contracts for security documents such as birth, marriage, and death certificates. De La Rue's UK passport contract, however, is not included.
The acquisition is due to complete in the 2019 calendar year, although De La Rue will provide printing services to HID until March 2022.
In the De La Rue's financial year ended March 30, International Identity Solutions generated GBP37.8 million of sales with an operating profit of GBP2.3 million. International Identity Solutions' gross assets were GBP88 million on that date, of which GBP38 million will be transferred with the business.
HID also is an Identity Solutions business and is part of ASSA ABLOY Group. ASSA ABLOY provides solutions for mechanical and electromechanical locking, access control, hotel security, identification technology, and other aspects of security.
De La Rue Chief Executive Martin Sutherland said: "After assessing all options, we believe that exiting the end-to-end identity solutions market is the right one for the group and will deliver the most value to shareholders. Focusing on the identity-related security features and components is in line with our strategy to transform De La Rue to an asset light and more technology-led business. This transaction strengthens our balance sheet and allows us to focus on the other strategic growth areas."
Shares in De La Rue were up 2.3% at 306.76 pence on Wednesday morning in London.
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