Fingerprint recognition provider Technoglobal adopts accretive M&A strategy
Technoglobal Inc., a leading Japanese provider of fingerprint authentication technology, is seeking to acquire new international businesses to spur accretive growth.
Technoglobal has decided to continue its expansion not just through organic growth but also via strategic overseas acquisitions. The firm has hired KGI Asia Limited, a pan-Asian financial services group, to assist in identifying purchase targets.
KGI Asia is one of the top 10 futures brokers in the region, serving more than 500,000 clients in Hong Kong, China, Taiwan, Korea and Thailand. Employing over 2,000 professionals in over 80 offices in the region, KGI provides comprehensive one-stop financial services for both retail and institutional clients.
Technoglobal has engaged KGI Asia because it believes that the timing is right for international expansion. Global market demand for fingerprint authentication in mobile devices has grown significantly since the US$356 million acquisition of mobile security firm AuthenTec by Apple back in 2012. The Biometrics Research Group, publisher of BiometricUpdate.com, predicts that the inclusion of biometrics in mobile devices will generate about US$9 billion worth of revenue for the biometrics industry by 2018.
As a result, Technoglobal has recently commenced negotiations with a Hong Kong-based fingerprint authentication company, which already has an established brand in the Middle East and Europe. This company, which manufactures its products to Fast Identity Online Alliance (FIDO) standards, will soon commence shipping product.
“We are delighted to have appointed KGI Asia in assisting Technoglobal Inc. with our international expansion strategy,” stated Lars Lundgren, Chief Marketing Officer of Technoglobal. “We have already identified a number of possible targets and it is important, given the rise in market demand for mobile biometric products, to move quickly to secure these potential acquisitions.”
Technoglobal has a strong track record of buying businesses involved in biometrics. In the past the firm successfully acquired, and then sold, a majority stake in Fingerprint Cards AB, a Swedish designer and manufacturer of fingerprint biometric components and technologies.