EyeLock signs iris biometrics distribution deal with GalvanEyes
EyeLock has entered a new exclusive distribution agreement for its iris biometrics with GalvanEyes to target domestic real estate and government markets, and specific international markets.
Following the beginning of the collaboration, GalvanEyes will become the exclusive distributor of EyeLock biometric products in the EU, Switzerland, Puerto Rico, Malaysia, and Singapore.
The agreement will also grant GalvanEyes exclusive distribution rights in the U.S. for the residential real estate market and specific U.S. Government agencies, as well as non-exclusive distribution rights in all other territories and verticals.
In exchange for the distribution rights, GalvanEyes will pay EyeLock $10 million with an annual fee of up to $5 million, and payments made quarterly.
For context, EyeLock is a Voxx majority-owned subsidiary, while GalvanEyes operates as a Florida limited liability company (LLC) managed by Voxx’s largest shareholder, Beat Kahli. Voxx entered into a standstill agreement with Avalon Park International and Kähli Holding AG, Kahli’s holding company, in November as Kahli and affiliates considered acquiring a stake in EyeLock.
“From the onset of our process, we had been looking to bring on a strategic partner to help move EyeLock technology into untapped markets quicker,” commented Pat Lavelle, president and CEO of Voxx. “With Beat Kahli and the team assembled, we have achieved that goal, while maintaining the upside we believe EyeLock possesses for our shareholders. This strategic alliance will also substantially reduce VOXX’s cash burn and EyeLock’s EBITDA loss.”
According to the executive, both acceptance rates and uses of biometrics are becoming more widespread at a global level, and among biometric modalities, iris recognition is the most secure.
“We have been working closely with several companies over the past few years and believe we are on the cusp of more widespread adoption,” Lavelle explained.
“With GalvanEyes as our strategic partner, we expect to see new opportunities emerge, especially given their vast customer network and knowledge of our solutions, after rigorous due diligence. This has been a great working relationship to date, and we look forward to continuing to build value for EyeLock’s customers and all VOXX shareholders.”