In just five years, thanks to skillful acquisitions and synergetic strategies, Edgyn and Inexto have established themselves in the buoyant market of product traceability and authentication.
Although inherently difficult to quantify precisely, the counterfeiting market is one of the most lucrative in the world. According to the International Chamber of Commerce’s BASCAP report, the total value of the illicit trade is estimated at $1,770 billion. It is also estimated to have caused the destruction of more than 2.5 million jobs and a loss of $78 billion in tax revenues.
In France, the third most affected country in the world because of the strong presence of the luxury, spirits and cosmetics industry, customs and DGCCRF services seized 8.4 million fraudulent products in 2017. And they seized more than 564,000 bottles of fake perfumes in 2019.
In a context of economic globalization and free circulation of products and capital, the protection of branded products, currencies or official documents has become a major challenge for large companies and governments.
Impala has been addressing this issue since 2015. At the same time, faced with the collapse of the paper market, the Arjowiggins Security Group, the historical leader in banknote security, was experiencing difficulties. The Impala holding company acquired two of its divisions and their technologies, including Arjo Solutions, which specializes in product security.
For Aurélien Tignol, CEO of Arjo Solutions – which will become Edgyn in 2021 – and President of Inexto, this acquisition will boost the ambition and dynamism of a company and a team with unparalleled technologies and know-how. It will also accelerate the development of innovative digital authentication solutions from highly differentiated technologies.
In 2016, Impala seized a second opportunity in the product traceability and authentication sector with the creation of Inexto. After more than a year of negotiation, the company acquired several product marking and traceability software divisions divested by Philip Morris and the three other main tobacco producers. This included the know-how of an extremely qualified and experienced team of engineers and developers, led by Philippe Chatelain (CEO), Erwan Fradet (CTO) and Patrick Chanez (CIO).
Inexto’s unique know-how was skillfully used to develop and offer its traceability solutions to a growing number of industries, increasing its workforce from 16 to 100 people in five years, over its five sites around the world.
“We have built with both compagnies a unique portfolio of solutions, both in terms of its richness and complementarity. This allows us to meet the expectations of many industries: product traceability, anti-counterfeiting, the fight against parallel markets, regulatory obligations, and direct interaction with the consumer. We do this while keeping each company focused on its key priorities: brand protection for Edgyn, mandatory traceability in regulated markets for Inexto”.
Edgyn has developed digital fingerprinting processes (unique “biometric” digital signature of products), a portfolio of high-security inks and secret additives, security substrates for documents or currencies, a brand protection platform (“Edgyn Care”), connected security labels, etc.. while Inexto offers a whole range of track and trace software that allows a product to be identified and tracked in its supply chain, with unparalleled capacities on high-speed production lines.
Edgyn and Inexto have a combined turnover of almost €50 million. It’s a good example of the entrepreneurial spirit meeting a growing market opportunity.
Learn more: Edgyn / Inexto