Dutch digital-security specialist Gemalto (Amsterdam, the Netherlands) has bought Ericsson’s Internet Payment Exchange (IPX) business for an undisclosed sum as it targets the fast-growing mobile-payments market.
The acquisition does not include the US operations of the Ericsson (Stockholm, Sweden) business.
IPX connects more than 1,000 customers globally to over 120 mobile network operators. The company also operates payment platforms as white-label services for a number of operators.
Gemalto is also set to acquire Ericsson’s Trusted Service Manager (TSM) activity as part of the deal.
IPX will become a part of Gemalto’s Software and Services business line in its Mobile Communications segment.
Olivier Piou, Gemalto’s chief executive, says the acquisition represents a natural step for his company as it ramps up its mobile-payments proposition. “IPX’s positioning, as an international player built on Ericsson advanced technology, is really a perfect fit with Gemalto,” he said.
According to Richard Anell, the head of IPX, Gemalto’s expertise in the areas of advanced secure cards and NFC will be critical to the success of IPX in the future. “We are very pleased and excited to have a new owner with great interest in our business and such complementary solutions,” he said.
Currently headquartered in Stockholm, IPX employs approximately 100 people.
With 10,000 employees, Gemalto reported revenues of $2 billion last financial year and is looking to capitalize on the current excitement surrounding mobile payments and M2M applications.