VLID3 Valid

Valid Soluções S.A. (VLID3) is a Brazilian company with more than six decades of experience in physical and digital security solutions, with shares traded on B3 since 2006, when it joined the Novo Mercado segment. Its origin dates back to 1957, with the founding of Thomas de La Rue in Brazil, a company focused on high-security graphic services and printing technology. Throughout the 1990s and 2000s, the company expanded its scope through acquisitions and joint ventures, incorporating graphic services businesses from major domestic banks and stakes in smart card companies. In 2010, after the exit of American Banknote Corporation as the main shareholder, it adopted the corporate name Valid Soluções e Serviços de Segurança em Meios de Pagamento e Identificação S.A., consolidating its focus on payment methods, identification, and security printing. In 2018 it changed its name to Valid Soluções S.A., reinforcing its positioning as a global provider of solutions for the secure identification of people, objects, and transactions.

Valid’s business model is based on an integrated offering of products and services that combine high-security physical and digital technologies. The company operates mainly in three business segments: Identification, Payment Methods, and Mobile. In all of them, the central logic is to provide solutions that enable identity authentication, data protection, asset tracking, and secure transactions, with intensive use of anti-fraud technologies, biometrics, cryptography, and large database management. The company positions itself as a provider of end-to-end solutions, from system development and data capture to the issuance of physical and digital documents, card personalization, and the provision of software platforms and cloud services. This diversified portfolio supports close relationships with governments, financial institutions, and telecommunications operators, which represent its main target sectors.

In the Identification segment, considered Valid’s strategic core, the company offers a full-service structure for issuing identification documents and managing data. Its solutions encompass biometric and biographical data capture systems, database administration, document digitization, printing and personalization of identity cards (RG and National Identity Card), driver’s licenses, functional documents, professional association IDs, professional credentials, and security prints, in addition to digital versions of these documents. The company operates in several Brazilian states, with more than 80 document issuance sites and operational presence in 13 states, serving, directly or indirectly, all 27 states through functional identities and other services. In 2024, for example, it took on new RG/CIN issuance contracts in Ceará and Bahia, increasing the annual volume of documents. The Identification vertical also includes Valid Certificadora Digital, accredited by ICP-Brasil, responsible for issuing digital certificates such as e-CPF, e-CNPJ, NF-e, CT-e, and SSL/TLS certificates, as well as time-stamping, biometrics, public key management, and hosting of certification and registration authorities. This portfolio is complemented by smart city solutions, such as unified citizen registries, geographic information systems for tax management, and platforms for automating public processes, including biometric projects for school attendance control and traceability solutions for products, vehicles, and commodities.

The Payment Methods segment concentrates the production and personalization of cards and security documents aimed at the financial system and other sectors that use physical and digital credentials. Valid manufactures chip cards, contactless cards and magnetic stripe cards, gift cards, and cards used in multiple applications, ranging from health care to online public services, with a strong presence in bank credit and debit cards. The company also produces security documents such as checkbooks, vouchers, tickets, and admission tickets, and performs electronic printing of invoices, bank statements, and boletos for financial institutions, insurers, telecommunications operators, and power utilities. In this business unit, the company develops mobile payment solutions using technologies such as NFC, TSM, and HCE, as well as platforms for managing digital communication with customers. A relevant component of this segment is its RFID operations, in which Valid stands out as a pioneer in the manufacturing of electronic identification tags in Brazil, benefiting from the Processo Produtivo Básico (PPB) and focusing on item traceability solutions for large consumer electronics companies and other sectors.

In the Mobile segment, Valid operates globally as a supplier of SIM Cards and technological solutions for the telecommunications market. The company is among the leading SIM Card manufacturers in the world, with a relevant share in the global market and production plants in Brazil, Spain, and Argentina, as well as operations in countries such as the United States, Mexico, and Denmark. Its portfolio includes traditional SIM Cards, embedded-SIMs (eSIMs), and proprietary operating systems for chips, developed by research and development teams. In addition to physical production, Valid provides traditional and advanced OTA (Over-the-Air) platforms, device management systems (Device Manager, Device Entitlement Server), secure connectivity solutions for connected devices and IoT, and digital onboarding tools for mobile operators. These solutions enable operators to improve communication with their customers, remotely manage SIM and eSIM profiles, enable top-ups and mobile payments, and support use cases related to the connected life and digital mobility.

Valid’s geographical footprint combines a strong presence in Brazil with international operations in more than 15 countries. Around 60% of its recent net revenue comes from the Brazilian market, where the company is a leader in the issuance of identification documents. Internationally, Valid has built a relevant position especially in telecom and payment methods, with units and clients in North America (United States), Europe (Spain, Denmark), Latin America (Argentina, Mexico, Colombia, Uruguay), Africa (Nigeria), and Asia, as well as operations in locations such as Mauritius and Singapore. This setup reinforces the geographical diversification of revenue and allows demand swings in certain markets to be partially offset by others. The international expansion strategy was driven by acquisitions of technology and security services companies in payment methods, identity, and telecommunications, which broadened its product portfolio and global customer base.

Valid’s customer base is concentrated in large public and private organizations, generally under long-term contracts with a high degree of operational criticality. In the Identification segment, its main customers are state governments and federal public agencies responsible for issuing civil documents, driver’s licenses, and functional documents, under contracts usually awarded through public tenders with terms ranging from one to four years, subject to renewal. In Payment Methods, the client base includes some of the largest financial institutions in the world, as well as insurance companies, utilities, and major issuers of invoices and statements, many of which have had relationships with Valid for more than a decade on average. In Mobile, customers are mainly global and regional mobile network operators that require large volumes of SIM Cards and connectivity management services. This combination of recurring contracts and high switching costs for suppliers contributes to long-lasting relationships and revenue streams aligned with digital transformation projects and the modernization of identification and telecom infrastructures.

From a regulatory perspective, Valid operates in environments with a strong government presence and high technical requirements. In issuing identification documents in Brazil, it is subject to federal and state rules that define security standards, infrastructure, and database integration, including the new National Identity Card model, established by Decree 10,977/22, which requires adherence to technical specifications and the use of the CPF as a unique identifier. In digital certification, it operates under accreditation from the Brazilian public key infrastructure (ICP-Brasil), supervised by the Instituto Nacional de Tecnologia da Informação (ITI), complying with requirements for issuing qualified certificates, time-stamping services, biometrics, and the provision of trust services. These regulatory frameworks shape product development, require recurring certifications, and underpin technical and compliance barriers to entry for new competitors.

On environmental, social, and governance aspects, Valid emphasizes information security, data privacy, and regulatory compliance as core elements of its activities, especially in a context of the trust economy and transaction digitalization. The company maintains international certifications for security standards, such as the recertification of the WebTrust seal for Valid Certificadora, attesting compliance with standards from the American Institute of Certified Public Accountants (AICPA) and the Canadian Institute of Chartered Accountants (CICA). In its social activities, it stands out for supporting digital inclusion and the modernization of public services through smart city projects and identification solutions that aim to improve access to health, education, mobility, and public safety services. In governance, its presence in B3’s Novo Mercado segment indicates adherence to more stringent corporate governance practices, such as issuing only common shares and providing greater transparency in its relationship with shareholders, reinforcing the company’s institutional standing in the Brazilian capital market.