An Israeli smart card start-up may be one of the big winners in the US government smart document project. Sources inform ''Globes'' that information security solutions developer for smart cards SC2 Ltd. is one of the two companies whose technology will be used in the issuing of 50 million smart US passports.
In a few weeks, the US Government Printing Office (GPO) will publish a tender for the smart passport vendors. The bidders, multinational integrators such as IBM Corporation (NYSE: IBM), will use subcontractors to provide information security solutions. This is where SC2 and its European competitors, such as Gemalto SA (Euronext: GTO), which has a market cap of €2.5 billion, enter the picture.
The smart passport tender is worth about $500 million, the bulk of which will go to the winner, and a small part to the subcontractor, SC2, or Gemalto. The potential revenue for SC2 is at least several million dollars. A few years ago, it won a tender with its long-term partner, Infineon AG (NYSE; XETRA: IFN).
SC2 is based in Ramat Hahayal in Tel Aviv. Its CEO is Jacob Mendel. On its website, the company says that it has "won and delivered many important qualitative projects", but that it cannot disclose them due to confidentiality agreements.
Nisko Industries Ltd. (TASE: NSKO) owns 50.02% of SC2 through Nisko Projects Electronics and Communication Ltd. (TASE: NSPR). Nisko Project's share rose 1.2% to NIS 6, giving a market cap of NIS 74 million.
In its financial report for 2008, Nisko Projects states that SC2 has participated as a subcontractor in several tenders and pilots for smart cards worldwide. Nisko said that some of these tenders would be decided in the coming years, and that if SC2 or its partners won them, the wins would boost its activity and revenue.
Published by Globes [online], Israel business news - www.globes-online.com - on October 29, 2009
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