Toppan Gravity has struck a deal to acquire HID’s Citizen Identity division from Assa Abloy. The acquisition is anticipated to close in the upcoming months, although terms remain undisclosed. The move aligns with a broader trend of consolidation in the identity sector, emphasizing the integration of traditional and digital identity solutions. The HID division has seen revenue impacts post-pandemic, and industry experts predict continued mergers and acquisitions moving into 2025.
Toppan Gravity, based in Hong Kong, has finalized a deal to acquire the Citizen Identity division of HID, which is located in Texas and is a subsidiary of the Swedish enterprise, Assa Abloy. An insider source disclosed this information to Biometric Update, indicating that Toppan Gravity is set to gain control over HID’s Citizen Identity division in the upcoming months, although the financial details of the acquisition have yet to be revealed. HID Global has been a subsidiary of Assa Abloy since 2000 and has subsequently acquired biometric firms like Lumidgm and Crossmatch. HID operates independently, primarily focusing on two segments: Citizen Identity and physical access control solutions. The Citizens Identity unit originated from Assa Abloy’s 2019 purchase of De La Rue’s identity business. While Assa Abloy does not separately disclose the revenues for HID’s Citizen Identity division in its financial reports, it indicates that the Global Technologies division, including HID, generated 22.9 billion Swedish kronor (approximately $2.2 billion) in fiscal 2023. Notably, HID is responsible for about 70 percent of this Global Technologies revenue, though it has reported a significant decline in passport-related business post-pandemic. Alan Goode, CEO and Chief Analyst of Goode Intelligence, remarked on the pattern of consolidation within the identity sector and pointed out that the shift towards hybrid government-issued identities is driving acquisitions. Toppan Gravity’s acquisition aligns with recent industry trends, further supported by Idemia’s sale of its Smart Identity business to IN Groupe and Entrust’s acquisition of Onfido. Additionally, Toppan Gravity previously acquired a Colombian card manufacturing firm and initiated a joint venture for biometric passport production in Ethiopia.
The acquisition reflects a significant trend within the biometrics and identity management industry, characterized by increasing consolidation among companies. The global landscape of identity management is evolving, integrating both traditional document-based identity systems and modern digital identity solutions. This transformation is largely driven by advancements in technology, the rising importance of security, and the growing need for seamless identity verification in various sectors, especially in travel and access management. Notably, the pandemic has reshaped the market dynamics for identity services, leading to fluctuating demand across different divisions. The emergence of new players and the strategies of established firms are crucial for understanding future developments in this sector.
In conclusion, Toppan Gravity’s acquisition of HID’s Citizen Identity division signifies an important maneuver in the rapidly consolidating identity sector, reflecting ongoing trends toward hybrid identity solutions. With the expected control over HID’s division, Toppan Gravity aims to enhance its portfolio and navigate the changing identity landscape shaped by technological advancements and shifts in consumer demand for identity verification solutions.
Original Source: www.biometricupdate.com
