Earlier this year, we commented on the acquisition of Netsize by Gemalto (read details here). As this post generated strong interest from our readers, we thought we'd followed up by looking at the Gemalto H1 results just published (available here).
The read is very interesting as Netsize is the elephant in the room in these H1 results: It is not mentioned once in the 17 pages document, however the overall financials of Gemalto seem to have been impacted materially by the acquisition. First the Software and Services group, where Netsize now reports, has grown by 48% to 110M€. That is an increase of 36M€ vs. 2009. Based on the latest information published by Netsize as an independent company, Netsize's revenue were either 90M€ (registre du commerce 2008) or 160M€ (press release). That means that the biggest part of the growth of the software and services revenue was driven by the Netsize acquisition. The Gemalto document also mentions that the acquired businesses contributed 38M€ to revenue in H1 and a loss of 2M€ to operational profit. As Netsize was, revenue wise, the biggest acquisition of Gemalto in H1, these numbers are mostly driven by Netsize. These numbers are also consistent with the information available on Netsize as an independent company.
What's the takeaway :
- Gemalto is incredibly shy for an acquisition that is clearly affecting their overall P&L
- Netsize does not seem to have benefited yet from the acquisition, as the results are in line with the last one published in 2008, even with a possible decrease of revenue over the last 2 years.
We'll see in 6 months what Gemalto will share on Netsize in its annual report.
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