Precise Biometrics acquires Swedish IT consultancy Fyrplus Teknik

Source: Precise Biometrics

Precise Biometrics AB (publ), a market-leader in the development and marketing of user-friendly fingerprint-based biometric security solutions, has acquired 100% of shares in the Swedish IT consultancy Fyrplus Teknik AB.

Through the acquisition, Precise Biometrics strengthens its operations for biometric security solutions in a time leading up to wide-ranging implementation of national ID cards and smart travel documentation planned in several countries. Precise Biometrics will gain access to sales revenues of about SEK 20 million (on an annual basis) and will, after the acquisition, be nearly twice as large as a group, with 60 employees.

"Through the acquisition, Precise Biometrics supplements its core operations within fingerprint technology and smart cards (Precise Match-on-Card(TM)) with additional skills and knowledge within multi-biometrics and the implementation of biometric solutions," says Christer Bergman, President & CEO of Precise Biometrics AB.

Fyrplus Teknik has extensive experience in multi-biometric projects (i.e. a combination of fingerprint, iris and facial recognition) from areas such as the travel industry, the pharmaceuticals industry and the healthcare sector, predominantly in Scandinavia.

"We have long worked in partnership with Precise Biometrics in various projects, including SAS [Scandinavian Airline Services]. There is a great deal of synergy between the companies which will now add value to the group, for example in the development of biometric solutions and customer relations," says Lennart Olsson, President of Fyrplus Teknik AB.

The market for biometric solutions is developing rapidly and increasing numbers of projects call for multi-biometric solutions. There are several national projects on the table now, which involve a combination of multiple biometric technologies. These include, for example, the new EU passport and the national ID card in Finland.

"Through the acquisition of Fyrplus Teknik, we gain access to important strategic competence within biometrics and further knowledge about the end-users' demands on our technology. Together we will be able to offer a complete range of multi-biometric system solutions on the Scandinavian market and can take on a larger role in customer projects," says Christer Bergman, President & CEO of Precise Biometrics AB.

The acquisition was completed on January 17, 2005 and is being financed with cash. The purchase price totals SEK 5-7 million, partly conditional on future profits. This entails a p/e index of 4.4-6.2 (based on profit after financial net). Fyrplus Teknik had sales of SEK 26.8 million for 2003/2004 (16 months) and showed profits of SEK 1.5 million after financial items. Equity as of 2005-01-17 amounted to SEK 0.6 million. Precise Biometrics' sales for the first nine months of 2004 were SEK 22.6 million. Fyrplus Teknik will be a wholly-owned subsidiary to Precise Biometrics. Lennart Olsson will remain president of Fyrplus Teknik AB.

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