Gemalto (Euronext NL0000400653 - GTO), the world leader in digital security, today confirmed that it has subscribed to a capital increase in Netsize, with an option to potentially acquire the company outright at a later date. The terms of the transaction were not disclosed.
Netsize offers mobile payment solutions based on operator billing (through premium SMS, MMS and WAP for example) for 100 mobile operators in 28 countries, reaching over 1 billion billable subscribers worldwide, and provides mobile messaging, with SMS and MMS delivery to over 200 countries.
Netsize was founded in 1999 by Stanislas Chesnais, who will remain as CEO. Prior to this capital increase, Gemalto already held 24% of Netsize. Headquartered in Levallois Peret, near Paris, France, Netsize employs approximately 180 people. Netsize will continue to operate as a stand-alone company within the Gemalto Group.
Olivier Piou, Chief Executive Officer of Gemalto, stated: "Gemalto invested in Netsize back in 2001 and was the first and largest outside investor in Netsize. It is natural extension of our long term relationship that Gemalto now becomes Netsize's majority shareholder. Netsize's mobile payment platform complements our rapidly expanding mobile software and services offering."
"Netsize has been a pioneer in mobilizing business and commerce" commented Philippe Vallée, Executive Vice President for Telecom at Gemalto. "Netsize's 'one click' mobile payment solution is a key brick in enabling the monetization of mobile phone downloads and app-stores".
Stanislas Chesnais, Founder and CEO of Netsize, added "Gemalto's investment will facilitate our expansion into new markets such Latin America, Africa and South East Asia. We look forward to leveraging Gemalto's digital security technology to make mobile payments even more pervasive and convenient".
Netsize is a leading mobile communications and commerce enabler. Netsize solutions include Mobile Messaging, with SMS and MMS delivery in 200 countries; Mobile Payment through operator-based billing (Premium SMS, MMS and WAP) in 28 countries; and Mobile Content Management platforms with publishing & editing tools to manage messaging services and mobile Internet portals. Netsize manages more than 60 million mobile transactions per month for 800 customers worldwide, including Fortune 500 companies. With 180 employees in 10 offices worldwide, Netsize provides both robust technical infrastructure and marketing expertise to support this successful deployment on a global scale.