De La Rue shares rise after it says it will acquire DuPont Authentication to strengthen its tech-led identification business
Banknote maker De La Rue's shares were up 3.45 per cent in afternoon trading following an announcement it would acquire the authentication business of DuPont Electronics and Communications for $25m (£19.7) in cash.
DuPont Authentication produces secure, anti-counterfeiting technology used to authenticate a range of products from consumer electronics to secure identity documents.
The authentication company has a well-established customer base in the US, and its customers include government entities and companies like Lenovo Group and Brother Industries.
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The business has around 40 employees and is expected to generate around $14m (£11m) of revenue in the 2016 calendar year.
The acquisition is in line with De La Rue's five-year strategic plan to transform the group into a technology-led identification business and move away from cash printing. De La Rue said DuPont's technology will strengthen its security features, product authentication and traceability and identity solutions product lines.
The transaction is expected to complete by the end of 2016.
Martin Sutherland, chief executive of De La Rue, said
Government and brand owners around the world are increasingly focused on protecting identities and their supply chains from counterfeiting and protecting both revenues and customers from illicit trade. This transaction will further enhance our position in this strategically important and growing market.
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