UK-based ID Data is to acquire Dublin's CardBase Technologies, a provider of multi-application smart card management systems, in a share deal worth EUR3.42 million.
Under the share deal, ID Data will issue 32.6 million shares at seven pence each.
CardBase's existing institutional shareholders - which include Bank of Scotland (Ireland), ICC Equity, Eastbound Consultores e Servicos, Portugal and LTG International - are also subscribing for almost 11 million new ID Data shares, also at seven pence each, which will raise a total of EUR1.15 million. ID Data says these funds will be used to provide grow the CardBase business and improve market presence.
CardBase's Mascot smart card management platform enables card issuers to manage the complete lifecycle of a smart card. The firm's clients include British Airways and Nigeria's e-purse scheme ValuCard.
For the 12 month period to December 2003, CardBase chalked up revenues of EUR2.1 million and pre-tax losses of EUR1.7 million. At time of acquisition net liabilities will be €0.4 million, having charged all development costs against profits.
Commenting on the acquisition, Peter Cox, chief executive, ID Data, says: "It better equips us to supply not only banks, but also the UK and other governments that are either considering the introduction of identity cards or reviewing their requirements in that area."
Following the take-over, ID Data says CardBase's senior management will remain to assist it in developing the business.