Tactilis acquisition by Global Invacom Group falls apart

Global Invacom Group (GInva) and biometric smart card maker Tactilis have mutually agreed to end the planned acquisition of the latter by the former company, and to waive the $20 million break fee contained in the sale and purchase agreement (SPA), The Business Times reports.

The companies will evenly split all costs and expenses related to the proposed deal, which may have resulted in a reverse takeover. The deal, which was originally agreed to in October, had proposed a total purchase price at or near US$200 million, with multiple options for share issuances to fund the transaction. Three GInva board members out of seven voted against the deal, according to the Times.

GInva said in a statement that the deal fell apart due to “difficulties in fulfilling all of the conditions precedent in the SPA.”

Frost & Sullivan reportedly valuated Tactilis at $200 million, despite the company earning revenues of approximately $32,000 in 2017 and $3,600 in 2016, for annual losses of $2.36 million and $1.2 million, respectively. The company opened a new facility to manufacture biometric smart cards last April, and biometric sensor partner NEXT Biometrics has shipped it 60,000 units to support projects including three trials of biometric cards for the IOM.

GInva had been placed on the SGX Watch-List in June 2018 after six months with a weighted average price below SGD$0.20 (US$0.15) and daily market capitalization below SGD$40 million ($29.5 million). Shares in GInva closed down 0.3 cents at SGD4.2 cents on Thursday.

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