De La Rue gets extended Microsoft contract

A contract to provide security labels for Microsoft products has been one of the key drivers for revenues at De La Rue’s authentications division, so news of an extension to the deal has lifted the company.

De La Rue and Microsoft have signed a five-year renewal to the contract, which focuses on authentication technologies used on the tech giant’s OEM, retail and Xbox products.

In a LinkedIn post, the UK company’s chief executive Clive Vacher hailed the renewal of the contract, which dates back 25 years, as “fabulous news” and “the opportunity to bring further innovation in protecting the Microsoft brand in the years to come.”

De La Rue said the new agreement will see it deliver brand protection through physical and digital technologies while continuing to reduce carbon footprint.

“This contract extension is another example of how we have been successfully building De La Rue's Authentication division to drive substantial long-term growth, as we continue to deliver the most secure and technologically advanced products and services to our customers," commented the company’s head of authentication Dave Sharratt.

The contract comes amid a lengthy turnaround drive at De La Rue, which kicked off when Vacher took the reins in 2019 after a tricky period for the company’s currency business and after it lost the contract to produce the UK passport.

In its half-year results reported in December, it said it was emerging from a downturn in its business, particularly in currency, and was showing greater resilience due to a cost-cutting drive.

At the time, Vacher said that the authentication business remained on course to reach £100 million in revenue for the full year.