Precise Biometrics divests mobile smartcard business to IDENTOS
Precise Biometrics has concluded an agreement with IDENTOS regarding the takeover of the company’s mobile smartcard solutions business area, which includes the business operation involving smartcard readers under the Tactivo brand.
As a result, Precise Biometrics will further increase its focus on the fingerprint technology business area and free up resources for the development and sales of fingerprint technology.
IDENTOS will take over all operations within the business area as of January 1, 2018, which includes the development of new smartcard readers under the Tactivo brand, patents, trademark rights, manufacturing, sales and customer support.
IDENTOS will gradually be introduced to existing customers and partners during the second half of the year 2017.
During this time, Precise employees currently working in the mobile smartcard solutions business area will be reassigned to the company’s fingerprint technology business area.
IDENTOS will pay Precise Biometrics commission on Tactivo sales during the period 2018-2020 as compensation for the divested business area, which Precise estimates will not have a significant impact on earnings.
“This is a good solution for Precise Biometrics that enables us to devote our full attention to developing our offering in the fingerprint technology business area. It is at the same time a good solution for our customers and partners, as IDENTOS will make the necessary investments in the new development of Tactivo products to support future mobile devices,” said Håkan Persson, CEO of Precise Biometrics.
The mobile smartcard solutions business area will be reported separately as a divested business operation, with net sales of SEK 13.9 million (US$1.6 million) for the full-year 2016.
Meanwhile, net sales for the remaining business operations in 2017 are expected to be on par with comparable net sales for 2016, which totaled SEK 83.3 million (US$9.5 million).
The company expects a positive net result for the remaining operations for the full year of 2017.
“IDENTOS has extensive experience with mobile card readers in the in the mobile e-health and government security sectors and views this agreement as an outstanding opportunity to further develop Tactivo in combination with our expertise in the field of mobile encryption solutions,” said Robert Schneider, CEO of IDENTOS. “We’ll be working in close collaboration with Precise Biometrics to make the takeover of Tactivo as smooth as possible for existing customers and partners.”
Rutger Petersson, director of research and development and a member of Precise Biometrics’ management team, announced earlier this month he is leaving the company for a new assignment as Analytics & Insight Manager at Verisure Innovation AB.