[E-Daily Shin Ha-yeon Reporter] KONA I CO.,LTD.(052400)has finalized its acquisition of Protec Secure Card (PSC), a U.S.-based company specializing in the manufacture and issuance of cards. By securing local production facilities and a sales network in the U.S., the company plans to expand its existing metal card business while diversifying its revenue streams to include chip cards and standard PVC cards.

According to KONA I CO.,LTD. on the 2nd, the company made the final payment for the acquisition of PSC shares in New York on the 1st (U.S. local time) and completed the process of acquiring 100% of the shares. This comes approximately one month after the company announced its acquisition plan on the 1st of last month.

This acquisition was carried out through KONA America Holdings, the company’s U.S. holding company. On August 31, KONA I CO.,LTD.’s board of directors decided to invest a total of $22 million (approximately 30.283 billion won). Of this amount, approximately $20.1 million was used for the PSC acquisition, while the remainder was allocated as working capital.

PSC is a financial card manufacturing and issuing company established in 2014 and based in Eaton Township, New Jersey. It offers a range of products and services, from EMV chip cards used in credit and debit cards to dual-interface cards, hybrid metal cards, and instant issuance services. The company holds certifications from major global card brands such as Visa, Mastercard, and Discover, as well as PCI compliance, and supplies card solutions to hundreds of clients.

According to KONA I CO.,LTD., PSC’s annual production capacity is approximately 50 million PVC cards, with annual revenue of about $30 million (approximately 41.3 billion won) and net income of about $1.5 million (approximately 2.1 billion won). KONA I CO.,LTD. plans to reflect the consolidated financial results of the acquisition starting in the fourth quarter of this year.

The key objective of this acquisition is to expand its U.S. customer base rather than simply increasing production capacity. KONA I CO.,LTD. has been operating its metal card business targeting major U.S. financial institutions using its domestic production facilities. However, due to a lack of a local sales network, the company faced limitations in directly acquiring small and medium-sized banks in the U.S.

However, through the acquisition of PSC, KONA I CO.,LTD. has secured both an existing customer base and a local sales organization, enabling it to expand its business scope to include small and medium-sized financial institutions. KONA I CO.,LTD. plans to leverage PSC’s customer network to expand its supply of metal cards and pursue a cross-selling strategy by offering additional product lines to existing customers.

In particular, the company plans to diversify its revenue structure by combining its proprietary chip technology with PSC’s card manufacturing facilities. Under this model, KONA I CO.,LTD. will supply its COB (Chip On Board) chips to PSC’s card manufacturing process, which will then be assembled into finished PVC cards and sold to U.S. financial institutions. The company envisions establishing a structure where an increase in U.S. card sales will correspondingly boost KONA I CO.,LTD.’s revenue from chip supply. The goal is to integrate these three business lines—the existing metal card business, chips, and PVC cards—into a cohesive operation.

The company also plans to expand its business in the U.S. premium metal card market. In its investor relations materials, KONA I CO.,LTD. outlined a strategy to combine its existing technological competitiveness with local production facilities and sales networks to compete against its U.S. rival, CompoSecure. Through this acquisition, the company plans to strengthen the competitiveness of its existing business by securing a local production base and sales channels targeting small and medium-sized financial institutions.

Going forward, the company plans to make phased capital investments in line with actual customer demand. While reviewing the possibility of capital investments to meet growing demand for PVC and metal cards in the U.S., the company intends to expand its local operations while maintaining PSC’s existing workforce and operational systems.

The financial burden resulting from the acquisition will be covered by the company’s own funds. According to the company, no separate borrowing was utilized for this transaction, and PSC is also generating stable operating profits. Even after the acquisition, the company plans to monitor local market conditions and customer demand in the U.S. while considering follow-up investments for business expansion.

Cho Jung-il, Chairman of KONA I CO.,LTD., stated, “PSC is a company that has already built solid trust and a strong reputation in the U.S. market and still has ample room for growth.” He added, “We chose to acquire PSC because we believe it can make a much greater leap forward by combining it with KONA I CO.,LTD.’s technology and unique identity.” He further noted, “We will build on the local expertise and customer relationships established by PSC’s executives and employees to ensure business continuity, while continuing to invest in line with the growth of the U.S. market.”