Security technology provider Giesecke+Devrient (G+D) has acquired the payment and identity solutions business of Valid USA, according to a press release.
“With this step, G+D aims to accelerate growth in the U.S., one of the world’s largest payment and identity markets,” the German company said in the release. “G+D customers will benefit from the enlarged business size in the face of persistent industry-wide supply chain challenges.”
The acquisition includes three manufacturing facilities in the U.S. — two in Illinois, and one in Indiana — which employ more than 400 workers, the release stated.
Headquartered in Munich, G+D has been doing business in the U.S. since 1990, providing payment, connectivity, identities and digital infrastructure technology, according to the release.
Valid is based in Brazil and has done business in the U.S. since 2012. It offers solutions in payment, mobile, data and identity solutions, as well as digital marketing and certification to financial institutions (FIs), merchants and government agencies, the release stated.
“Both Valid solutions perfectly complement G+D’s existing payment and identity business, enabling a gradual and seamless transition for all affected customers,” G+D said in the release.
When the deal closes later this year, G+D will integrate Valid’s businesses with its own. G+D will take over local payment card production, while its subsidiary, Veridos, which provides integrated identity solutions, will expand the driver’s license card business, according to the release.
Research from PYMNTS found that identity fraud is one of the largest cybersecurity threats, affecting more than 15 million Americans. Another study found that stolen identities were the main fraud method faced by FIs during the past year at 55%, with synthetic identity fraud taking second place at 44%.
Synthetic identity fraud is, in many ways, more harmful, even though there’s no identify theft victim. Corporations that become victims of this fraud can’t rely on an individual reporting a stolen identity, so they must turn on their own systems to root out this type of fraud.