Thales, whose products range from aerospace to defence, security and transportation, agreed to combine its digital businesses with Gemalto in a deal valued at about $5.42 billion, according to a Bloomberg report.
Thales made a 51 euro per share “cum dividend” all-cash offer for all issued and outstanding ordinary shares of Gemalto, according to a statement. It has been unanimously recommended by boards of the two companies. Gemalto will operate under its own brand as one of the seven Thales global business units and will continue to be led by Philippe Vallee.
Gamelto previously declined an unsolicited bid from Atos to buy the company, as the security-software maker’s board found the offer of 46 euros a share to “significantly” undervalue the company. Thales’s offer represents a premium of 57 percent over Gemalto’s closing price as of Dec. 8, according to the statement. The shares closed at 46.84 euros on Dec. 15.
Thales said it doesn’t anticipate any reduction in Gemalto’s workforce and has secured a 4 billion-euro fully committed credit agreement to fund the transaction. Thales’s dividend policy will remain unchanged, it said.