Oberthur Technologies to acquire MoreMagic, a leading mobile money solutions provider

Oberthur Technologies, a leading provider of security and identification solutions and services based on smart card technologies, entered into exclusive negotiations to acquire MoreMagic Solutions, a leading mobile financial services solutions provider, based in Waltham, Massachusetts.

On 28 February 2012, Oberthur Technologies entered into an exclusive agreement with MoreMagic, supported by its major shareholders including Battery Ventures and Vision Capital.

Today, the mobile phone increasingly represents a cost-effective solution to increase access to commerce and financial services both in the developed world and in the emerging markets. Mobile money services offer secure and convenient means for banked and unbanked people to pay, send and receive money, everywhere, at any time. The arrival of NFC technology will foster even more of these services.

Over the last years, Oberthur Technologies has actively engaged in both NFC and mobile money solutions, and recently won a key reference in Czech Republic in technological partnership with MoreMagic.

Combined, the technological capabilities of Oberthur Technologies and MoreMagic will create a comprehensive mobile money services suite, including secured end-to-end payment and money transfer services, helping mobile operators and financial institutions to offer innovative financial services in mobility, such as proximity, remote payment and mobile banking.

Xavier Drilhon, CEO of Oberthur Technologies, said: “The acquisition of MoreMagic is fully in line with our growth strategy, notably in our Solutions business and more specifically in the NFC ecosystem. The complementarities between our respective technological bricks and Oberthur Technologies' TSM expertise will perfectly fit the needs of our clients, in both mature and developing countries.”

Pankaj Gulati, CEO of MoreMagic, said: “For MoreMagic, its employees and customers, this is a great opportunity to create and utilise end-to-end, secure, turnkey solutions and cloud-based services in the mobile financial services space. Oberthur Technologies' global footprint and their leadership and commitment to the mobile payments space are very important for us. This new step in our collaboration is the natural evolution of an already successful partnership.”

This acquisition remains subject to the consultation of employees' work council and other customary approvals, including from relevant antitrust authorities.

Rutberg & Company acted as exclusive financial advisor to MoreMagic on this transaction.