ASSA ABLOY has established an agreement to sell its Citizen ID business to Japan-based Toppan.
The Citizen ID business operates under ASSA ABLOY’s HID brand, and concerns the design and manufacture of physical and mobile identity solutions. It has manufacturing facilities in Ireland, Malta, and the United States, and a workforce of about 450 employees. The business unit’s sales last year amounted to SEK 1,300 million, or about $123 million.
Notably, HID integrates biometric technologies into its identity solutions, offering governments biometric verification and enrolment services for citizen identification. This includes facial recognition, fingerprint scanning, and iris recognition, which are embedded into ID cards and passports to enable secure, multi-factor authentication.
Toppan, meanwhile, is a global Japanese company operating in a diverse range of industries, including printing, electronics, packaging, and security solutions. Originally founded in 1900 as a printing company, Toppan has expanded its offerings to include cutting-edge technologies such as semiconductor components, display materials, and digital security products like smart cards and anti-counterfeiting solutions.
ASSA ABLOY’s decision likely stems from a strategic realignment to focus on its core competencies. By divesting from the Citizen ID segment, ASSA ABLOY can concentrate resources on its primary areas of expertise, such as access solutions, door hardware, and security technologies. The move may allow the company to streamline operations, improve financial performance, and enhance shareholder value by shedding a division that may not align closely with its long-term strategic goals or may require significant investment to remain competitive.
For Toppan, acquiring ASSA ABLOY’s Citizen ID business represents a strategic opportunity to strengthen and expand its presence in the secure identification and authentication market. It could help Toppan to offer more comprehensive solutions in areas like ePassports, national ID cards, and biometric identification systems.
“I find it very satisfying that with Toppan, Citizen ID and its employees and customers get a committed long-term owner, creating new opportunities for the future and I wish them every success,” said ASSA ABLOY CEO Nico Delvaux.
Björn Lidefelt, who heads HID, also expressed enthusiasm about the move.
“Over the past decade, our team has created a highly reputable offering of physical and digital citizen identity solutions,” he said. “I am pleased with the improved performance of our Citizen ID business, appreciative of our employees’ contributions to HID and enthusiastic about their future success with Toppan.”
The move comes as France-based IN Groupe finalizes discussions to acquire Idemia Smart Identity, the biometrics and authentication business of the French giant Idemia, and shortly after the announcement of Crane NXT’s acquisition of De La Rue’s authentication business.
A number of other major deals have surfaced over the past several months, including Incode Technologies’ acquisition of MetaMap, Invixium’s acquisition of Triax Technologies, and Amadeus’ acquisition of Vision-Box at the start of the year.
“Consolidation in the identity management industry continues to accelerate,” observed TECH5’s Chief Strategy Officer, Rob Haslam, in a LinkedIn post. “An ever-changing landscape adapting to the emergence of new technologies and the evolution of how we prove our identities in the digital age.”
Toppan’s acquisition of ASSA ABLOY’s Citizen ID business is expected to close in the first quarter of 2025.
Source: ASSA ABLOY
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October 18, 2024 – by Alex Perala
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