Identive Group Inc. has acquired a majority stake in a German-based smart card provider in a $5.3 million stock deal.
The Santa Ana-based company on Wednesday acquired Payment Solution AG in Munich after issuing some 1.3 million common shares to the company’s shareholders.
Identive makes scanners, readers, cards and other security devices for buildings, computers, financial transactions and other uses.
Payment Solution makes software, smart cards, readers and related infrastructure that are used by customers to make cashless payments for concessions, merchandise and other items at sports stadiums, arenas, theme parks and other venues throughout Europe.
It counts Germany’s largest stadium, Signal Iduna Park, as a customer. The 80,225-person venue is home to Borussia Dortmund, one of the most successful soccer clubs in the country.
The stadium sells more than 25,000 liters of beer on game days.
The buy extends Identive’s reach in Europe and should add revenue immediately, according to Chief Executive Ayman Ashour.
“Payment solution has proven that they can help stadium operators and merchants increase their revenues through faster transactions in the limited time available for retail at sporting events and concerts,” he said.
Identive saw about $96.3 million in revenue for the 12 months through June 30, a 206% jump from two years earlier. That propelled it to No. 3 on last year’s list of fastest-growing public companies based in Orange County.
Investors sent Identive’s thinly traded shares up 2.6% in afternoon New York trading to a market value of about $135 million on word of the deal and an upbeat day on Wall Street.
