Morpho (Safran group) today announced the signing of an agreement to acquire Carvajal Group's banking card manufacturing and personalization centers in Colombia and Peru.
With this strategic move, Morpho will increase its regional presence and address the South American banking market as it undergoes chip migration to EMV"*, the global standard for credit and debit payment cards based on chip card technology. This acquisition is Morpho's answer to the increasing demand by the financial market to have local technological and service support for their fast migration to more secure payment transactions based on chip card technology.
Following the closing of this transaction, Morpho will be represented in Latin America with offices, factories and personalization centers in Brazil, Peru, Colombia, Argentina and Mexico.
This transaction is subject to customary regulatory approvals and closing is expected before the year end.
"This strategic move aims at combining the long regional customer relationships of trust built by Carvajal with Morpho's expertise in international smart card and high security technology. Our mission is to serve the needs of this fast-growing market as it moves toward secure chip cards and to offer local products and services tailored to customer needs," said Philippe d'Andrea, Executive Vice President Morpho, e-Documents Division.
"This transaction is part of the transformation process currently underway at Carvajal Group, which is geared toward sharpening our business focus. In doing so, we have pinpointed seven industry sectors: Education, Packaging, Work and Home spaces, Information, BPO, and Communication Solutions," said Ricardo Obregon, CEO of Carvajal Group. He also pointed out that this agreement falls within the strategic planning guidelines already laid down. He noted: "We believe that thanks to this move, the card business will continue to develop and efficiently support the regional market with the expertise brought by Morpho particularly in the context of bank cards EMV migration."
* EMV (Europay, MasterCard and VISA) is widely becoming the global standard in the migration from magnetic stripe cards to chip-based smart cards. EMV is an interoperability standard developed by the three financial institutions to ensure that all Europay, MasterCard, and VISA branded smart cards and all smart card-reading POS terminals and ATMs work together to deliver the highest level of security.