Advent International has entered into exclusive negotiations on a €1.15bn deal to buy the card systems and identity divisions of Oberthur Technologies.
The card systems division specialises in smart card-based security systems for banks, mobile operators and mass transit systems, while the identity unit manufactures identity documents, such as passports, identity cards, driving licenses and healthcare cards for both governmental and corporate markets.
The acquisition fits with other recent Advent deals in the payments markets, including investments in WorldPay, Cetip in Brazil and Fifth Third.
Jean-Pierre Savare, Oberthur founder, says his family will retain a minority stake of about 10% in the company.
Cédric Chateau, managing director with Advent International says: "Advent benefits both from a leading international network across many regions, including Latin America, and extensive breadth of expertise in the banking and telecommunications industries via its investments in the electronic payments sector, including WorldPay in the UK, Vantiv (previously Fifth Third Processing Solutions) in the United States and Cetip in Brazil."
He says Advent will support the company's growth through potential external acquisitions in the future.
Oberthur is expected to use the proceeds of the sale to fund another bid for troubled rival De La Rue after a joint bid with Bain Capital foundered earlier this year.