Aluf Holdings executes LOIs to acquire two biometrics businesses for over $30M combined
A pair of mystery biometrics companies are being targeted by Aluf Holdings for acquisition. The company announced the execution of non-binding Letters of Intent to acquire all outstanding stock of a pair of privately-held companies for millions in cash and stock.
One of the targets is described as a premier biometrics technologies company, which is located in California, has operated for 45 years, serves government, law enforcement, and commercial industries, and has annual gross revenues of nearly $10 million for the past five years. The company also expects its gross revenues to increase by 25 percent over the next five years.
The other target is an end-to-end, multifactor digital identity authentication and management platform, according to the announcement, which also notes biometrics have been forecast to secure $2 trillion in payment transactions by 2023, and says this business is well-positioned to take a large share in that market.
The combined price of the two companies set out in the terms of the Letters of Intent is $3 million in Aluf Holdings stock issuance, $19.4 million in cash, and $12.1 million in 1, 2, and 3-year unsecured sellers notes.
The news comes on the heels of a purchase agreement with another unnamed company and acquisition of Colotraq. The previously announced mystery target is a program management and software services company offering an SaaS Integrated Program Manager (IPM) application. Colotraq is a data center infrastructure sourcing company.
“The consummation of these acquisitions will immediately transform Aluf into a much larger company with annual revenues of approximately $39 million and EBITDA of approximately $14.5 million on a pro-forma basis for 2020,” states Dany M. Bouchedid, president and CEO of Aluf Holdings. “We are thrilled to present our shareholders with an opportunity to enhance the company’s current and future valuation as we execute the vision of becoming a leader in Next Gen technology while creating sustainable long-term value for our shareholders.”
Aluf Holdings expressed an interest earlier this year in acquiring companies working with biometrics and zero-knowledge proofs.
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