Fingerprint Cards (Fingerprints) has acquires Delta ID, the world`s leading supplier of iris recognition technology, for USD 106 million (approximately 938 MSEK). The acquisition of the Californian based company means that Fingerprints expands its business and its technology portfolio with biometric security solutions based on the human eye. The transaction is subject to regulatory approvals and expected to close during spring 2017.
Delta ID develops and deliver biometric identity and authentication solutions based on iris recognition technology. The company`s ActiveIRIS(TM) system is the world`s first and only iris recognition system for mobile phones, PCs, tablets and vehicles. The system includes a cloud based solution. The ActiveIRIS(TM) system is also certified for use with Aadhaar, the world`s largest biometric identity system. Aadhaar is implemented by the Indian government and has about 1.2 billion users.
“The acquisition means that we now expand our business to also include security solutions based on Delta ID`s world leading iris recognition technology. Delta ID complements our current product and business range perfectly, and we see both market and customer synergies. Delta ID`s products are for instance certified to be used with Aadhaar in India, and Fingerprints have a strong customer base in China”, says Christian Fredrikson, CEO of Fingerprints.
“Through the acquisition we will be able to provide multi-modal solutions to the market, combining iris recognition with our fingerprint sensors. Hence, the products will be both more secure and user-friendly. The acquisition is consistent with our strategy to expand and maintain our leadership position within biometry, from our leading position within fingerprint sensors for smartphones”, concludes Fredrikson.
Delta ID is based in Newark, Silicon Valley, California. The company was founded in 2011 and has 15 employees. Existing customers include Samsung, HP and Fujitsu. Through the acquisition Delta ID will be integrated into Fingerprints` organizational structure and employees from both companies will be co-located when possible.
“We are very excited to become part of the Fingerprints team. The potential synergies are obvious as we are both leaders in our respective fields and also very complementary. Together, we will create new exciting solutions for our customers and make biometrics authentication more secure and convenient for the users”, says Dr. Salil Prabhakar, president and CEO of Delta ID.
The acquisition is expected to be accretive to EPS in 2017 and is financed through a mix of existing cash facilities and debt. Following closing the acquisition is expected to have a marginal effect on the operating margin.
The cash consideration, representing an enterprise value of USD 106 million (approximately 938 MSEK), is subject to certain deferred payments based on the management`s future commitment over the coming two years. An additional earn out consideration of up to USD 14 million (approximately 124 MSEK) may become payable by Fingerprints if Delta ID exceeds its revenue forecast for 2017.
The transaction is subject to regulatory approvals and expected to close during spring 2017.