Finnish Setec is one of the leading companies in the electronic passport business and smart card and security printing technologies. Gemplus is the world’s leading provider of smart card based solutions, and the acquisition of Setec complements its activities both from a business and geographical perspective. The transaction is subject to certain standard closing conditions, including regulatory clearance, and it is expected to be closed in June 2005.
“Setec’s business has developed very favourable in the past 18 months and we are very satisfied with our investment in the company. Setec and Gemplus have a perfect industrial fit, and this acquisition will open the doors to the big, international markets for Setec. Naturally we are pleased that Setec has an opportunity to further develop and expand its business with its new owner,” says Petri Niemi, Head of CapMan Technology.
“The acquisition of Setec is a good opportunity in increasing our business portfolio and obtaining new technology, while complementing our existing structure”, comments Alex Mandl, President and CEO of Gemplus. “This will strengthen our strategy of delivering a range of solutions and subsystems for the Identity market and confirm our leadership across the board,” Mandl continues.
“The synergies between Gemplus and Setec are significant. We welcome this as an opportunity to benefit from the size of Gemplus both in terms of worldwide presence and as the leader in its industry. This is a great opportunity for Setec to promote its technology and expertise in different geographical markets”, says Pekka Eloholma, CEO of Setec.
CapMan Equity VII and Swedestart Tech funds managed/advised by CapMan invested in Setec in October 2003, when they acquired 40% of the shares of Setec from the Bank of Finland. The technology allocation of CapMan Equity VII is 33% or €101 million, out of which one fourth has been invested to date. Swedestart Tech focuses merely on technology investments and out of its total capital of €84 million the fund has already invested 45%. The proceeds from the sale of Setec return a significant part of the to date invested technology capital to investors in both CapMan Equity VII and Swedestart Tech funds. The sale of Setec is the first exit from the portfolio of CapMan Equity VII which was established in 2002.
Prior the transaction the other owners of Setec were Finnish National Fund for Research and Development (Sitra), Finnish Industry Investment Ltd, Varma Mutual Employment Pension Insurance Company, Sampo Life Insurance, the company’s operative management and other key employees and the company itself. Aventum Partners Oy has acted as the financial advisor to the sellers and Castrén & Snellman as the legal advisor to the sellers in this transaction.
For further information, please contact:
Petri Niemi, Head of CapMan Technology, tel: +358 400 511 493
Pekka Eloholma, CEO, Setec Oy, tel. +358 9 8941 4302 or +358 500 555 5590
Remi Calvet, Senior Vice President, Gemplus, tel: +33 622 728 158