Precise Biometrics to acquire NexID Biometrics for $3.49M
As a result of the acquisition, Precise Biometrics will be able to rapidly expand its fingerprint recognition software for mobile and embedded devices with liveness detection to significantly boost security and address customer demand for fraud mitigation.
In addition, the acquisition will provide competitive advantages, strengthen Precise Biometrics´ leading position in fingerprint software, and create further conditions for growth in the rapidly-growing fingerprint market.
Precise Biometrics said it will finance the acquisition through a private placement of shares to be implemented as soon as possible.
NexID Biometrics develops and licenses liveness detection software that enables more secure fingerprint authentication by mitigating spoof-related risks and significantly lowering the risk for fraud.
The acquisition will give Precise Biometrics access to liveness detection software that stems from over 10 years of research by world leading scientists on biometric spoof mitigation and liveness detection, exclusive rights to a portfolio of a combined 11 proprietary and university-licensed patents awarded or under review and a close working relationship with Clarkson University, one of the leading institutions in biometric research.
“We have been monitoring NexID Biometrics for some time as they have a powerful software solution for liveness detection. By integrating NexID Biometrics software with our fingerprint matching technology we will add anti-spoof functionality to our offering, providing enhanced security that meets customer demand, addressing future security requirements and emerging standards for biometric authentication”, said Håkan Persson, CEO of Precise Biometrics. “In addition to its industry leading technology, NexID Biometrics will bring valuable competence to our organization and will become vital in our efforts to continue to innovate fingerprint software.”
By integrating fingerprint liveness detection to identify fake fingers, Precise Biometrics adds increased security to its fingerprint authentication solutions.
The Potsdam, New York-headquartered NexID Biometrics will become a key component of Precise Biometrics research and development.
Precise Biometrics will continue NexID Biometrics’ ongoing working relationship with Clarkson University, one of five universities in the US Center for Identification Technology Research (CITeR), with a research program that focuses on biometric vulnerabilities and intelligence.
NexID Biometrics CEO Stephanie Schuckers is the current director of CITeR, and will take on a role as advisor to Precise Biometrics on matters such as strategic direction and product development.
“The combination of organizational resources and technologies will make for a strong contribution to the biometric authentication industry, including greater convenience and security for consumers making mobile payments with their smartphones”, said Dr. Schuckers.
The liveness detection software will be further optimized for mobile devices and will be integrated in Precise BioMatch Mobile, post-acquisition, during the first half of 2017.
Precise Biometrics will get access to expertise in spoof creation and human subject research, as well as valuable sales experience of biometric solutions.
In addition, NexID Biometrics’ Potsdam, New York headquarters will become Precise Biometrics’ base for US operations, enabling the company to better serve regional customers as the company expects to invest in and grow its US operations.
NexID Biometrics estimated turnover for 2016 is 2.7 million SEK (US$295,114), showing minor profits. The company will be integrated in Precise Biometrics business area fingerprint technology, including three full-time employees.
Precise Biometrics will also undertake a private placement of shares in order to raise gross proceeds of up to SEK 50 million (US$5.46 million), directed to Swedish and international qualified investors.
The subscription price for the shares in the private placement will be determined in a book-building process, with the minimum order established at EUR 100,000 (US$106,255) in shares.
The company will have the option to either shorten or extend the order period for the private placement. In addition, the board of directors can choose to cancel the book-building for any reasons and refrain from continuing with the private placement.
The acquisition is expected to close during the first quarter 2017.
Previously reported, Precise Biometrics signed a commercial software license and distribution agreement with Vkansee for the licensing of Precise Biometrics’ algorithm solution for fingerprint recognition in mobile devices, Precise BioMatch Mobile.