To expand its technology, security, manufacturing capabilities and geographical reach, Kfar Saba, Israel-based flash storage supplier M-Systems Flash Disk Pioneers Ltd. said today it would acquire Microelectronica Espanola, a Madrid, Spain-based smart card and smart card operating systems company for $40 million in cash.

M-Systems also said it expects this acquisition to enhance its mobile product portfolio and broaden its channel access to the mobile market.

Microelectronica Espanola, founded in 1989, has focused on the development of fundamental smart card technology that is used in telecommunications, security and banking applications.

“Integrating security and storage on one hand, and building a broad portfolio of mobile storage solutions on the other, are at the core of our mobile strategy,” said Arnon Dinur, senior VP of strategy and M&A at M-Systems, in a statement. “We believe that continuing with Microelectronica Espanola’s current team and maintaining its position in the market as a provider of high-end smart card solutions falls right into place with our own market positioning and direction.”

Simone Cavallo, who recently joined M-Systems, will oversee the activities of Microelectronica Espanola. During the last five years, Cavallo served as CEO of Incard, a global smart card manufacturer and has international experience in the telecommunications and smart card industries.

“Today’s announcement opens a world of new opportunities for M-Systems as we combine Microelectronica Espanola’s team, channels, its advanced secured manufacturing capabilities and smart card technology, with our own core competencies in the realm of flash management and security,” said Dov Moran, president and CEO of M-Systems.

“We now expect to offer a unique portfolio of storage solutions for mobile handsets - DiskOnChip Embedded Flash Drives, memory cards, MegaSIM products and SIM cards,” Moran added.

By: DocMemory
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