Smartcard leaders Axalto and Gemplus are to merge, creating a company with an annual revenue of around €1.8bn.
The firms described the deal as a "merger of equals", with most of its R&D in Paris and Marseille, while headquartered in The Netherlands. Known as Gemalto, the firm will employ some 11,000 people.
"This transaction is an important development for Gemplus, Axalto and the digital security industry as a whole," said Alex Mandl, president and CEO of Gemplus.
The boards of the firms, along with Gemplus' largest shareholders Texas Pacific Group and the Quandt family, have agreed to the merger. The deal will eventually result in operational savings of around €85m.
"Gemalto anticipates limited job reductions in its R&D and manufacturing base due to current high capacity utilisation and the need for further human capital to service the anticipated industry growth," said the firm.
www.axalto.com
www.gemplus.com
www.gemalto.com