Gemalto eyes acquisitions to accelerate 2017 growth plan - CEO
By Nicholas Vinocur and Gwénaëlle Barzic
PARIS (Reuters) - Gemalto, which makes smart chips for mobile phones, bank cards and biometric passports, is considering acquisitions to speed up plans to surpass 600 million euros (482 million pounds) in revenue from operations by 2017, its CEO said.
The digital security company has dismissed suggestions that Apple's installation of SIM cards and near-field payment technology into its new tablets and phones could threaten its business plan, saying an expansion of the market was beneficial.
"We are looking at things to accelerate the plan," Chief Executive Olivier Piou told Reuters in an interview, referring to possible acquisitions of small firms and the 2017 target.
Piou added that Gemalto maintained its target of double-digit growth in its profit from operations in 2014, despite lower-than-expected revenue in the third quarter.
"Our business is growing structurally because the markets in which we are active are growing quickly," he said. "With more digital activity, there is a greater need for confidence."
In August, Gemalto announced it would buy U.S. data protection specialist SafeNet for $890 million, in a move to expand the firm's customer base to major U.S. clients and expand its offering in data protection.
Piou said that after Gemalto "broke the piggy bank" buying SafeNet, the firm was examining possible acquisitions of smaller firms which it could purchase thanks to a sound balance sheet and low level of indebtedness.
(Reporting By Nicholas Vinocur and Gwenaelle Barzic; editing by Leigh Thomas and David Evans)
