Commercial avionics and air traffic management specialist Thales has wrapped up the previously announced $5.39bn takeover of Dutch rival Gemalto.
The deal was originally announced in December 2017.
The acquisition will enable Thales to create a group that will have all the technologies supporting the critical decision chain for companies, organisations, and governments.
Thales will use Gemalto’s resources to develop secure solutions to address the major challenges in unmanned air traffic management, data, and network cybersecurity, airport security or financial transaction security.
The group has also decided to invest nearly €1bn per annum on a research and development initiative, aimed at further boosting its digital expertise in the internet of things, big data, artificial intelligence, and cybersecurity.
Thales chairman and CEO Patrice Caine said: “With Gemalto, a global leader in digital identification and data protection, Thales has acquired a set of highly complementary technologies and competencies with applications in all of our five vertical markets, which are now redefined as aerospace, space, ground transportation, digital identity and security, and defence and security.
“Together, we are creating a giant in digital identity and security with the capabilities to compete in the big leagues worldwide.”
With the completion of the acquisition, Gemalto will operate as one of Thales’s seven global divisions under the Digital Identity and Security (DIS) brand name.
As a result of the takeover, Thales will expand its operations in Latin America (2,500 staff, up from 600), triple its presence in Northern Asia (1,980 from 700), Southeast Asia (2,500 from 800) and India (1,150 from 400) and North America (6,660 from 4,600).
In 2018, Thales recorded revenues of €19bn and has a workforce of 80,000 employees working in 68 countries.
Thales was recently chosen to lead a SESAR Joint Undertaking public / private project aimed at preparing Europe for future increases in drone traffic.