I am saying that because the newly formed organization will start to compete in the Government ID industry like anyone was able to do before.
Card Personalization Hardware makers like Entust Datacard, Evolis, NBS, Matica Technologies and MagiCard are regularly bidding to Government ID tenders mostly for the card personalization part only. Entrust Datacard, Matica Technologies and few others such as Müelbauer are bidding for Passport Personalization too.
On the other side of the spectrum we have companies such as Gemalto, OT-Morpho, G&D that own fundamentally IPs on Card / ePassport OS and bid to the card side of the Government ID tenders. When needed by tender requirements they join force with the hardware manufacturers to make complete offer.
System Integrators such as Arjo Systems, Veridos, Iris and few others were basically combining hardware and software elements from the manufacturers in order to bid with turnkey solutions.
No one, until now, was able to offer – under the same roof – hardware and software for a Government ID project. Now, HID Global, has become the only company in the industry potentially able to offer a complete solutions for decentralized Government ID projects.
Namely HID Global does have capabilities in card personalization hardware and personalization software while Arjo Systems have a strong skillset on eID Card & ePassport OS, few nice patents on card inlays, solutions for border control plus a pretty solid integration skills.
If we consider the business of centralized ePassport issuance with the hardware made by IAI Industrial Systems, HID Global is further reinforcing its competencies competing head-to-head with Entrust Datacard, Muelbauer, Atlantic Zeiser, Otto Künnecke and Emperor.
I would expect further consolidation in this domain pushed further by National ID Cards and ePassport projects becoming more and more sophisticated thus the needs of players able to control the whole value chain.