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SAFRAN to Acquire Motorola's Biometrics Business
PARIS and SCHAUMBURG, Illinois, October 15 /PRNewswire/ -- SAFRAN through Sagem Securite, its wholly owned subsidiary and
a world leader in ID solutions based on biometrics, today announced that it
has entered into a definitive agreement to acquire the biometric business
unit within Motorola Inc. (NYSE: MOT), which includes its Printrak trademark.
The acquisition has been approved by Motorola and SAFRAN.
Motorola's biometric business unit, headquartered in Anaheim,
California, USA, designs, develops, integrates and maintains automated
fingerprint identification systems ("AFIS") for law enforcement, civil and
commercial customers around the world. The firm serves national, state,
county and municipal agencies internationally, and provides integration
solutions and systems for more than 300 customers in 40 countries in North
America, Europe, the Middle East and Asia.
Jean-Paul Herteman, CEO of SAFRAN said, "This acquisition
enables Sagem Securite to strengthen its position in the US market for
homeland security where it is already committed to offer world-class
identification solutions to government, state and local markets. This
acquisition is a continuation of SAFRAN's long history of investing in the
US. It is also an important step in our plan to improve our product offering,
expand production in the US, and reduce costs."
Jean-Paul Jainsky, CEO of Sagem Securite added, "Through this
acquisition, Sagem Securite, its existing customers, and Motorola's existing
biometrics customers are expected to benefit from increased efficiencies and
customer responsiveness from the merger of the two businesses."
"Biometrics is a very dynamic business that we believe
requires companies to specialize in the technology," said Gene Delaney,
president, Government & Public Safety, Motorola. "To best serve our customers
and employees, Motorola made a judgment that we need to concentrate and lead
in our area of strength - delivering best-in-class mission critical
communications solutions for government, public safety and commercial
customers."
The transaction is targeted to close first quarter of 2009 at
the latest and is subject to customary closing conditions and regulatory
approvals.
SAFRAN, with approximately $17 billion in revenue in 2007, is
an international high-technology group. SAFRAN has been operating in the U.S.
for 30 years and is a world leader in a number of industrial segments,
including aircraft engines through the 34-year CFM International Joint
Venture with General Electric, and also supplies aircraft components used on
many U.S. military platforms as well as civil aviation customers. Its largest
U.S. customer is Boeing and it has significant relationships with other U.S.
aerospace companies. SAFRAN operates in aerospace propulsion, aircraft
equipment, defense and security.
Products incorporating SAFRAN's technology have been used for
over 20 years by the U.S. Air Force, U.S. Navy, U.S. Army, U.S. Marine Corps,
U.S. Coast Guard and NASA. Representative products today include KC-135R
Stratotanker C-17 Globemaster, F/A-18, F-16, F-22, V-22 and C-130. SAFRAN is
party to over 100 technical assistance agreements (TAAs) and manufacturing
licence agreements (MLAs), has 22 empowered corporate officials dedicated to
export control and regulations and is committed to full compliance to such
requirements and implements internal policies and procedures to this end.
SAFRAN has more than 57,000 employees in over 30 countries,
including 3,500 employees in the U.S. with facilities and offices in 42
locations across 19 states.
http://www.safran-group.com
Sagem Securite is one of the world's leading suppliers of
identity systems, Sagem Securite focuses on applications including personal
rights and flow management, in particular based on biometrics, secure
terminals and smart cards. Its integrated solutions are deployed worldwide
and contribute to the safety and security of transportation, data, people and
states. Sagem Securite is a fast growing company with an annual growth over
15 % in the last two years.
Sagem Securite is already present in the US through Sagem
Morpho, Inc. which develops and sells secure identification systems
incorporating various biometric technologies including fingerprint, palm
prints, iris and facial recognition either through OEM relationships with
major U.S. integrators such as Northrop Grumman and Lockheed Martin, or
through its own direct relationships with customers. SMI's U.S. customers for
these systems include both law enforcement and civil agencies such as New
York State Division of Criminal Justice Services, Missouri State Highway
Patrol, New York State Office of Temporary and Disability Assistance, U.S.
Drug Enforcement Agency, New York Police Department Central Records
Division,, FBI Latent Laboratory, FBI Criminal Justice Information Services,
U.S. Army Crime Lab).
Sagem Securite has 4,000 employees in over 24 countries and
annual revenues exceeding $ 1 billion in 2007.
http://www.sagem-securite.com
Motorola is known around the world for innovation in
communications. The company develops technologies, products and services that
make mobile experiences possible. Our portfolio includes communications
infrastructure, enterprise mobility solutions, digital set-tops, cable
modems, mobile devices and Bluetooth accessories. Motorola is committed to
delivering next generation communication solutions to people, businesses and
governments. A Fortune 100 company with global presence and impact, Motorola
had sales of US $36.6 billion in 2007. For more information about our
company, our people and our innovations, please visit http://www.motorola.com
Forward-Looking Statements
Certain statements contained in this press release, including
the expected timetable for completing the proposed transaction, future
financial and operating results, benefits and synergies of the transaction,
future opportunities and offerings for the combined company and products, any
other statements regarding Motorola's or Sagem Securite's future
expectations, beliefs, goals or prospects, and any statements that are not
statements of historical facts might be considered forward-looking
statements. While these forward-looking statements represent managements'
current judgment of future events, they are subject to risks and
uncertainties that could cause actual results to differ materially from those
stated in the forward-looking statements. Important factors that could cause
actual results or events to differ materially from those indicated by such
forward-looking statements, include: (i) the parties' ability to consummate
the transaction; (ii) the conditions to the completion of the transaction may
not be satisfied, or the regulatory approvals required for the transaction
may not be obtained on the terms expected or on the anticipated schedule;
(iii) the possibility that the parties may be unable to achieve expected
synergies and operating efficiencies within expected time-frames or at all;
(iv) Sagem Securite's ability to successfully integrate Motorola's biometric
operations into those of Sagem Securite and the possibility that such
integration may be more difficult, time-consuming or costly than expected;
(v) revenues following the transaction may be lower than expected; (vi)
operating costs, customer loss and business disruption (including, without
limitation, difficulties in maintaining relationships with employees,
customers, clients or suppliers) may be greater than expected following the
transaction; (vii) the retention of certain key employees within Motorola's
biometrics unit; (viii) the inability to protect either party's intellectual
property rights may weaken its competitive position; (ix) the general outlook
for the economy and the biometrics industry; (x) other factors, including
factors described in Motorola's Annual Report on Form 10-K for the year ended
December 31, 2007 and its subsequent reports filed with the SEC. Motorola and
Sagem Securite assume no obligation to update or revise any forward-looking
statement in this press release, and such forward-looking statements speak
only as of the date hereof.






