Gemalto, SIM card maker turned “world leader in digital security” (I wonder how many companies claim that title; it’s like boxing, it seems) announced it would subscribe to a capital increase in Netsize, turning Gemalto’s share (24% pre-money) into a majority position.
This may well signify another move towards a closer tie to highly integrated hardware/software/service solutions on the mobile value chain. Gemalto is one of the leaders on the SIM card side, it manufactures SD cards, USB tokens, smart banking cards, etc. Netsize sits on the service side of things: it provides SMS and MMS delivery, is one of the leading mobile payment providers and provides content management platforms. Glue it together, and it becomes a vertically integrated solution from the same mould. Has someone been reading Apple’s philosophy?
Besides these points, cross-selling opportunities would appear to be fairly obvious, too. The only mismatch could be that Gemalto focuses on digital security (they list mobile connectivity, identity and data protection, credit card safety, health and transportation, e-government and national security). Alas, no messaging and entertainment here, the two main areas of Netsize’s business.
This little mismatch is not unprecedented: does anyone remember the VeriSign acquisition of Jamba? Whilst it seems it may (just) have been paid off, the match between the companies was never really there, it seems. Let’s hope the Gemalto-Netsize story will be a brighter one.
