French electronic payment systems provider Ingenico (INGC.PA: Quote, Profile, Research) and technology company Sagem Securite said on July26 they have entered exclusive talks over combining their electronic payment solutions businesses.

The proposed transaction concerns the payment terminals businesses of Sagem Securite, principally Sagem Monetel and Sagem Denmark and their respective subsidiaries. Sagem Securite is a unit of French aerospace and telecoms business Safran They added the deal would involve the issuance of new Ingenico shares to Sagem Securite which would become a major shareholder in Ingenico.

Ingenico shares closed at 20.67 euros on Wednesday, giving the company a stock market value of around 680 million euros ($939.1 million). Safran shares closed at 18.74 euros, giving Safran a market capitalization of around 7.9 billion euros.