Knowledge management firm Safran completes L-1 Identity Solutions deal to become world leader in biometric identity solutions
By ECM Plus staff
ECM Plus +++ After completing all required approval procedures, French company Safran (NYSE Euronext Paris: SAF) has now finalised the acquisition of L-1 Identity Solutions, Inc., the identity management provider in the United States of America, for a total cash consideration of US$1.09 billion or US$12 per share.
Commenting on the deal. Chairman and CEO of the French company Jean-Paul Herteman said: “L-1 is a very impressive company, which has become a major player in the identification market in just a few years, especially in the United States.”
The deal which was originally announced September 20, 2010.
According to L-1, its biometric and identity management: access control, secure credentialing and enrolment services businesses – generated sales exceeding US$450 million in 2010. L-1’s financial results will be included in Safran’s consolidated financial statements.
L-1 will join Safran’s existing security business, operating as Morpho, and will be renamed MorphoTrust.
The new company will be partly-managed as a proxy structure, for ‘appropriate protection for U.S. national security’ the company said.
Run-rate operating cost synergies are expected to represent approximately $30 million per year, and are expected to be fully realized within 18 to 24 months after closing.
Safran’s security business has over 7,200 employees of which 2 200 are in the United States of America.
Safran operates in three core businesses: aerospace propulsion and equipment, defence and security with over 54,000 employees with a turnover of 10.8 billion euros in 2010.