Last checked at 12 Jun 2019 07:00
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
DE LA RUE PLC
Sale of International Identity Solutions business
12 June 2019
· Exits prime system integration in the identity market with the sale of International Identity Solutions business for a cash consideration of £42m
· Refocuses on identity-related security features and components to maximise technology and customer synergies with the rest of the Group
· Strengthens De La Rue's balance sheet and enables the Group to focus on other strategic growth areas such as Product Authentication & Traceability and Security Features
De La Rue plc ("De La Rue" or the "Group"), the world's premier currency and authentication provider, is pleased to announce that it has agreed the sale of its International Identity Solutions business ("International ID") to HID Corporation Limited ("HID Global"), an ASSA ABLOY Group company, for a cash consideration of £42m on a cash free debt free basis, payable upon completion.
Under the terms of the agreement, HID Global will acquire De La Rue's international identity solutions contracts, associated software, passport assembly facilities in Malta, and certain printing contracts of security documents such as visas and birth/death/marriage certificates. The agreement also includes De La Rue providing printing services to HID Global until March 2022. The UK passport contract is outside the scope of the agreement.
This transaction will allow the Group to refocus on identity-related security features and components where the market opportunities are more accessible. Strong synergies in technology and customer relations between identity security features and the rest of the Group will enable it to generate better returns on investment. The sale proceeds will strengthen the Group's balance sheet, providing it with greater flexibility to invest in other strategic growth areas.
In the financial year to 30 March 2019, the business generated sales of £37.8m and an operating profit of £2.3m (post allocated corporate overhead). The gross assets of the business were £88m as at 30 March 2019, of which £38m will be transferred with the business.
The transaction is expected to complete within this calendar year.
Commenting on the transaction, Martin Sutherland, Chief Executive Officer of De La Rue said:
"After assessing all options, we believe that exiting the end to end identity solutions market is the right one for the Group and will deliver the most value to shareholders. Focusing on the identity-related security features and components is in line with our strategy to transform De La Rue to an asset light and more technology-led business. This transaction strengthens our balance sheet and allows us to focus on the other strategic growth areas of Security Features, Polymer, and PA&T."
De La Rue plc's LEI code is 213800DH741LZWIJXP78.
This transaction constitutes a class 2 transaction for the purposes of the Financial Conduct Authority's Listing Rules.
The person responsible for the release of this announcement on behalf of De La Rue plc is Helen Willis (Chief Financial Officer).
Enquiries:
De La Rue plc +44 (0)1256 605000
Martin Sutherland | Chief Executive Officer |
Helen Willis | Chief Financial Officer |
Lili Huang | Head of Investor Relations |
Brunswick +44 (0)207 404 5959
Azadeh Varzi |
Stuart Donnelly |
About De La Rue
De La Rue's purpose is to enable every citizen to participate securely in the global economy. As a trusted partner of governments, central banks and commercial organisations, De La Rue provides products and services that underpin the integrity of trade, personal identity and the movement of goods.
As the world's largest designer and commercial printer of banknotes, De La Rue designs, manufactures and delivers banknotes, banknote substrates and security features to customers in a world where currency will continue to be a key part of the developing payments eco-system. De La Rue is the only integrated supplier of polymer banknotes, and creates security features that ensure banknotes are protected against counterfeiting.
De La Rue is the world's largest commercial designer and printer of passports, delivering national and international identity tokens and software solutions for governments in a world that is increasingly focused on the importance of a legal and secure identity for every individual.
De La Rue also creates and delivers secure product identifiers and 'track and trace' software for governments and commercial customers alike to help to tackle the challenge of illicit or counterfeit goods and the collection of revenue and excise duties.
De La Rue is listed on the London Stock Exchange (LSE:DLAR). For further information visit www.delarue.com
About ASSA ABLOY
The ASSA ABLOY Group is the global leader in access solutions. The Group operates worldwide with 48,500 employees and sales of SEK 84 billion. The Group has leading positions in areas such as efficient door openings, trusted identities and entrance automation. ASSA ABLOY's innovations enable safe, secure and convenient access to physical and digital places. Every day, we help billions of people experience a more open world.
About HID Global
HID Global powers the trusted identities of the world's people, places and things. We make it possible for people to transact safely, work productively and travel freely. Our trusted identity solutions give people convenient access to physical and digital places and connect things that can be identified, verified and tracked digitally. Millions of people around the world use HID products and services to navigate their everyday lives, and over 2 billion things are connected through HID technology. We work with governments, educational institutions, hospitals, financial institutions, industrial businesses and some of the most innovative companies on the planet. Headquartered in Austin, Texas, HID Global has over 3,000 employees worldwide and operates international offices that support more than 100 countries. HID Global® is an ASSA ABLOY Group brand. For more information, visit www.hidglobal.com.
Cautionary note regarding forward-looking statements
This announcement may contain statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts and include statements regarding the intentions, beliefs or current expectations of the directors of De La Rue or the Group concerning, amongst other things, the results of operations, financial condition, prospects and strategies of De La Rue.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond De La Rue's ability to control or predict. Forward-looking statements are not guarantees of future performance. The Group's actual results of operations and financial condition may differ materially from the impression created by the forward-looking statements contained in this announcement.
Other than in accordance with its legal or regulatory obligations, De La Rue does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.