September 26, 2016 -
A Chinese firm approached Fingerprint Cards (FPC) this summer about a potential acquisition that is likely to increase FPC’s current market value of SEK 33 billion (US$3.87 billion), according to a Betaville report that cites three sources familiar to the matter.
FPC held talks with the advisers of the Chinese firm, which is believed to be Beijing Watertek Information Technology, the sources said.
The Swedish fingerprint maker rejected the most recent offer from Beijing Watertek Information Technology as it was not high enough, one person close to the matter said.
It is unclear whether FPC will continue its talks with the Chinese firm. Meanwhile, Fingerprint Cards has yet to hire any advisers as the company is not actively looking for a buyout.
The sources appear to have varied opinions on FPC’s potential acquisition price, with one source stating that the Swedish firm could sell between SEK 140 and SEK 180 (US$16.42 and US$21.10) a share.
Meanwhile, another source said Beijing Watertek Information Technology would have to make a bid that was significantly more than SEK 180 (US$21.10) for FPC to accept the offer.
This is partly attributed to Scandanavian technology businesses being valued at much lower prices than Chinese technology companies.
The report stated that FPC spokesperson Malin Strandvall declined to comment, while Beijing Watertek Information Technology could not be reached for comment.
Previously reported, Fingerprint Cards AB CEO Christian Fredrikson said he is considering making acquisitions to help expand into new market segments such as sensor-equipped cards, access systems for buildings, smart-home technology, and cars.