In January last year, Gemalto acquired Netsize. Back then, we shared our thoughts on the impact of this deal on the mobile payment industry (read details here). A few months afterward, we looked for some detail numbers in the H1 results of Gemalto… and could not find much (analysis of Gemalto H1 result here). Gemalto published last week its results and detailed annual report for 2010. Hopefully, this will give us a little more insight into this landmark transaction.
For the first time in its official document, Gemalto shares with is shareholders some details on the Netsize acquisition: "At the start of the year we took a controlling stake in Netsize, with its under-utilized mobile commerce and mobile marketing platform. This makes Gemalto a key player in mobile application sales, and rounds out the services we provide to operators to bolster their subscriber revenues."
The annual report is actually quite rich in numbers about Netsize:
- In 2010, Netsize's revenue were 61M€ and net profit was -4M€
- Gemalto paid 9M€ in cash for an extra 61,53% of Netsize to increase its stake to 85,65%
- At the time of acquisition, Netsize fair value of net assets was a significant -10,6M€. This situation probably explains the somewhat low valuation reached by the company.
- The net result is a goodwill of 18M€, net of minority shareholders' interest
Since the acquisition, things have also change at the management level. According to Netsize website management page, Stanislas Chesnais the founder and CEO has now left the company. Michel Leger, the first COO under Gemalto's watch has now joined Ingenico.
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