Across the board, the idenity space is hot. Last week French smart card manufacturer spread its wings a little bit with the acquisition of Finnish secure document company, Setec.

Apparently their cooperation on the Singapore electronic passport last year impressed some folks. The deal makes lots of sense. As our paper documents become smarter, the vertical integration of the component manufacturers provides a logical competitive advantage. Pennies matter on this scale, so making production as efficient as possible means a more competitive Gemplus.

While it won’t immediately translate into benefits for the rest of Gemplus’ customer base, maybe it will down the road. Like most smart card companies, Gemplus gets most of their revenues from the telco industry. Although Gemplus has been supplying the ID market for some time, it always held more promise than profits. They made a big play into solutions just before the dot com bust. The Setec acquisition puts Gemplus in a stronger competitive place to pursue secure ID efforts like they won in Singapore.

Smart cards are already showing up in lots of other form factors than cards, so why not throw paper into the mix?

Gemplus Press Release

Gemplus snaps up e-document firm | The Register