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When Gemalto NV earlier this week announced its purchase of the smart card unit of Australia-based Keycorp Ltd., a deal that includes Keycorp's interest in the Multos operating system, the France-based card vendor set itself on a course that should lead to a stronger position for the company in the Asia-Pacific region and a chance to make Multos more popular around the world, an analyst tells CardLine Global. Gemalto, the world's largest supplier of smart cards, announced Monday it will spend A$25.7 million (US$21.8 million or 14.9 million euros) to acquire the unit (CardLine Global, 2 Sept.). Banks and government agencies use the highly secure Multos technology for chip-based banking, identification cards and electronic passports. Multos use is most common in the Asia-Pacific region. "From the Asian front, this transaction will solidify the already strong presence of Gemalto," says Adil Moussa, an analyst for United States-based Aite Group. "Gemalto already has won major contracts in China, Taiwan, (and) India in different applications. This acquisition will consolidate their presence in Australia and other Pacific Rim countries." Gemalto says the Keycorp deal will generate at least 15 million euros in additional annual revenue, mostly from Asia. But the Multos system will see its fortunes rise, too, Moussa says. "For Multos, it will also mean being able to compete on a global scale using Gemalto's existing relationships and deploying their platform in other markets where they did not have a presence," he says.
