Linxens, a French manufacturer of micro-connectors for smart cards, has purchased Smartrac's Secure ID & Transaction (SIT) division, a maker of Radio-frequency identification (RFID) products, for an undisclosed amount.
Amsterdam-based Smartrac is a manufacturer of RFID products and IoT solutions, and enables businesses to identify, authenticate, track and complement product offerings.
Smartrac's SIT division offers RFID components for government-issued documents (eIDs, ePassports, eDriving Licenses), payments, transportation, loyalty and access control.
Under the agreement, the combined company will focus on shared programmes to accelerate new product development, and is expected to generate over EUR500m in revenue.
The transaction, which is subject to regulatory clearance, is expected to complete by the end of 2016.
Linxens CEO Christophe Duverne said: "We intend to leverage our portfolio of innovative products and solutions to become the go-to one-stop shop for secure smart card connectivity solutions for contact and contactless systems.
“We are both innovation leaders in our own fields, so combining our innovation skills will allow us to envision the future of secure smart card connectivity technologies to deliver best-in-class products to our customers.
"A local presence delivers major benefits for our customers. With a more global footprint, we can better respond to changes in market demand, and further improve our understanding of customer needs in the context of specific local market requirements," Duverne added.