French defence contractor Safran emerges world leader in biometric identification

State-owned French aerospace and defence contractor Safran Group has emerged as the world leader in biometric identification following the completion of its $1.09 billion acquisition of US-based face-recognition software maker L-1 Identity Solutions.

The Paris-based company today said that it has completed the acquisition of L-1 Identity Solutions, which was originally announced in September 2010. (See: French defence firm Safran to buy L-1 Identity Solutions for $1.09 billion)

Formed through the 2006 merger of Viisage and Identix, Stamford, Connecticut-based L-1 combines face and other biometric recognition technologies with credentialing and access control systems for protecting identity.

Its main customers are the US government agencies, which use its products for improving homeland security and border security.

Safran is a leading international high-technology group with three core businesses: aerospace, defence and security. Operating worldwide, the group has 55,000 employees and annual sales exceeding €10.4 billion.
L-1's 2010 financial results will be included in Safran's consolidated financial statements, said Safran. L-1 generated sales of $450 million last year.

L-1 will join Safran's existing security business, operating as Morpho, and will be renamed MorphoTrust. The new company will be partly managed as a proxy structure, which will provide protection for US national security.

Run-rate operating cost synergies are expected to represent approximately $30 million per year, and are expected to be fully realised within 18 to 24 months after closing.

Assuming this acquisition had been completed in 2010, Safran's security business sales would have totalled €1.4 billion in 2010.