Advent Plans €3.4B Sale of Idemia’s Public Security Business

Key Takeaways

Sector: Aerospace & Defense, Technology Software & Gaming.
Geography: France.

Analysis

Advent International is preparing the potential divestment of Idemia’s public security unit, a move that could value the business between €2 billion and €3 billion ($2.3 billion–$3.4 billion). The plan comes on the heels of Idemia’s smart identity division sale to IN Groupe and is part of a broader strategy to separate and monetize key assets of the French biometrics group.

The US private equity firm, which has owned Idemia since 2017, is working with Rothschild & Co to initiate a formal sale process, potentially launching in September. According to sources close to the matter, strategic buyers from the aerospace and defense sectors, as well as financial sponsors focused on security and technology, are expected to show strong interest.

The public security unit provides critical biometric solutions, including facial recognition systems, airport security platforms, and criminal identification tools. It has an especially robust US presence, supplying law enforcement agencies with technologies for fingerprint submission, criminal record verification, and partnerships with the FBI.

While Advent is moving forward with preparations, the firm is also considering retaining the asset should market conditions not meet valuation expectations. A final decision is expected after preliminary market soundings in the coming months. Neither Advent nor Rothschild has commented publicly on the process.

This is the second major structural step for Idemia, following its July 1 sale of the smart identity division to French government-backed IN Groupe. That deal followed a strategic restructuring, in which Idemia’s operations were split into three standalone units: smart identity, public security, and secure transactions.

Advent originally created Idemia in 2017 by merging Safran SA’s identity and security operations with Oberthur Technologies, which it had acquired in 2011. The public security arm now employs approximately 3,800 staff globally and remains vital to the company’s mission of supporting governments and agencies in public safety and surveillance operations.

If completed, the transaction could represent one of the largest carve-outs in Europe’s security sector this year, as private equity firms increasingly look to crystallize returns amid growing demand for cyber-resilient and mission-critical assets.