Fingerprint Cards acquires Delta ID for $106M
Fingerprint Cards (FPC) has acquired iris recognition firm Delta ID for US$106 million (approximately 938 MSEK) in combined cash and debt, expanding its fingerprint business and technology with a line of iris biometric security solutions.
The acquisition is expected to close during the spring, subject to regulatory approvals.
Delta ID develops and delivers a range of iris recognition solutions, including its ActiveIRIS iris recognition system for mobile phones, PCs, tablets and vehicles.
ActiveIRIS system includes a cloud based solution and is also certified for use with Aadhaar, India’s national biometric identity system.
“The acquisition means that we now expand our business to also include security solutions based on Delta ID’s world leading iris recognition technology,” Fingerprints CEO Christian Fredrikson said. “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.
“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.”
Founded in 2011, Delta ID is based in Newark, Silicon Valley, California and currently has 15 employees.
The company’s customers include Samsung, HP and Fujitsu, which recently launched the ActiveIRIS 3.0-powered arrows NX F-01J smartphone in Japan.
Through the acquisition Delta ID will be integrated into FPC’s organizational structure and employees from both companies will be colocated when possible.
“We are very excited to become part of the Fingerprints team,” Dr. Salil Prabhakar, president and CEO of Delta ID said. “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.”
The acquisition is expected to be accretive to the company’s earnings per share in 2017 as well as to have a marginal effect on the operating margin.
FPC could also be paid up to US$14 million (approximately 124 MSEK) as an additional earn out if Delta ID exceeds its revenue forecast for 2017.
Lazard have acted as financial advisors while Hannes Snellman and Morrison Foerster have acted as legal advisors to FPC in the acquisition.