Fingerprint Cards reviews options as biometrics industry consolidation continues
Fingerprint Cards is exploring its options to deliver value to shareholders with a strategic revue initiated by its Board of Directors, in the wake of a series of biometrics provider acquisitions.
The overall value of the global biometrics market is estimated at $23.5 billion in 2020 by analyst firm IMARC Services. The firm forecasts strong growth in the market through 2026 in its ‘Biometric Market: Global Industry Trends, Market Share, Scale, Growth Rate, Opportunities, Future Forecasts (2021-2026).’
“During the past years, Fingerprints has developed positively with an improved market position, stronger customer offering in Mobile and developing new significant market opportunities in Payments & Access. The board sees good opportunities to continue the development of the company for the long term, and in order to accelerate this development and maximize the future potential of the company, a strategic review should be conducted,” Fingerprint Cards’ Chairman Johan Carlström comments.
He mentions acquisitions, spin-offs, sales and new listings as possible alternatives the Board will consider.
“There has been considerable interest for Fingerprints from a number of different players, which has triggered the review process”, he says.
FPC announced a reorganization in April including a clearer separation of its Mobile business line from its Payment and Access line.
The company’s Board has engaged Jefferies International Limited and Carnegie Investment Bank to provide financial advice on the review and Hannes Snellman for legal advice.
The review does not constitute a commitment to any corporate decision, FPC notes in the announcement.
Yinda Infocomm strikes deal with IML
Yinda Infocomm has reached an agreement with The Institute of Machine Learning GmbH (IML) and its founders to incorporate a company in Singapore, which will then acquire IML’s key assets with funds from a convertible loan it receives from Yinda Infocomm.
IML founders Adam Hegedüs and Roland Trimmel will grant Yinda Infocomm an option to buy their shares in the new company. Terms of the machinations must all be agreed to within two months of the term sheet signed by the parties for it to be valid.
Assets acquired by the new company will include IML’s intellectual property and software for biometric facial liveness detection and age classification, its know your customer (KYC) platform, and contracts with customers and resellers. IML was founded in 2019 in Austria.
Yinda Infocomm will pay €1.5 million (roughly US$2.4 million) for a 70 percent stake in the new company, with one-third payable in cash and the other two-thirds in new Yinda Infocomm shares.
Yinda Infocomm also recently acquired a significant minority stake in Tech5, and says that addition of the IML’s digital KYC platform compliments the core biometric technologies developed by Tech5.
Sybrin acquired by investors
One Thousand & One Voices (1K1V) and Crossfin have jointly acquired Sybrin Group, which is being carved out of publicly-trade EOH, for Rand 410 million ($28.7 million) to expand its international reach and find synergies with the buyers’ technology investments.
1K1V is a private equity fund and Crossfin is a fintech investment holding company.
Sybrin’s biometric liveness detection technology was recently found compliant with FIDO’s ISO-based PAD standards in testing by Fime. The company provides biometrics and other software solutions, mainly to financial services providers, in 17 countries in Africa, the Middle East, Eastern Europe and the UK.
“Sybrin has been hard at work during the last few years to modernise and expand our software solutions and operating model to gear the business for local as well as international growth,” states Sybrin Group CEO Marius Mare. “Our partnership with 1K1V, Crossfin and Isaac gives our business significant additional leverage into the South African, African, and U.S. markets. In addition to access to capital and route to market benefits, we also see great synergies with several businesses already in the stables of our new partners such as [email protected] through 1K1V as well as Adumo and Crossgate through Crossfin.”