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Secure Transactions News

Inside files IPO prospectus

Thursday 19 May 2011

Inside is a fabless semiconductor company, 100% focused on secure semiconductor platforms. The company has now 341 employees.

With this IPO process, Inside expects to raise funds to:

  • Support organic growth and R&D investment,
  • Further strengthen its balance sheet,
  • Fund possible complementary add-on acquisitions,
  • Growth platform for future liquidity.

Inside now positions itself as an expert in secure microcontrollers, with activities in three business units:

  • Secure Payment – Inside is #1 global provider of contactless chips for payments & US market share leader and global #2 provider of secure contactless and contact-based microcontrollers to the payment card market. Market is evaluated at 890 million units in 2010, with a 26% CAGR from 2010 to 2015,
  • Digital Security – Inside is a major provider of secure microcontroller solutions for authentication of people and devices, with applications including pay TV, e-ID documents, access control, and other secure systems for anti-counterfeiting, IP protection and the “internet of things”. Market is evaluated at over 600 million units in 2010, with a 14% CAGR from 2010 to 2015,
  • Mobile NFC – Inside positions itself as a pioneer and leader in high growth NFC market, and one of only two semiconductor vendors worldwide shipping NFC chips in volume. Inside proposes a complete NFC solution offering with strong IP position. Market is evaluated at 70 million NFC-enabled mobile devices in 2011, with a 84% CAGR from 2011 to 2015.

The company’s current shareholder structure is Sofinnova (18%), GIMV (7%), FSI (7%), key executives and employees (12%), and other investors including Visa, Atmel, Qualcomm, Assa Abloy, Samsung, Nokia, Motorola, Vertex, AltaBerkely, GGV Capital, EuroUS Ventures and West Summit.

Inside prides itself with having over 50% of its workforce engaged in R&D, with an in-depth expertise recognized throughout the industry. Inside has been pioneering NFC Technology since 2000, before the “NFC” expression was coined. The company owns 200 patents in NFC and contactless technologies, including 2 fundamental patents of NFC technologies. With 200+ patents in security (hardware and software), the company’s portfolio reaches 500+ patens.

On contactless payments, Inside products are inside 9 out of the top 10 US contactless card issuers. Inside expects a mass adoption of contactless EMV in the US from 2013.

As a part of its IPO process, Inside Secure announces its financial results:

 

In 2010, Inside acquired the Secure Microcontroller Solutions (SMS) business from Atmel, which meant the transfer of 156 employees. The company’s pro forma 2010 revenue is US$ 157 million (EUR 111 million). Inside Secure revenue CAGR has been +35% between 2005 and 2010.

Inside Secure anticipates its 2013 revenue will be around US$ 400 million (EUR 283 million), with a 40% gross margin rate, and an adjusted EBITDA margin of 15%.