FB pixel

Precise Biometrics acquires visitor management system provider EastCoast in $8.8M deal

Raises $2.5 million through a directed share issue
Precise Biometrics acquires visitor management system provider EastCoast in $8.8M deal

Precise Biometrics has acquired a visitor management system provider for SEK 80 million (approximately US$8.8 million) and announced it has raised SEK 23 million ($2.5 million) through a directed share issue.

The acquisition of Sweden-based EastCoast Solutions is expected to boost Precise’ digital identity software-as-a-service (SaaS) business area, according to the announcement, and strengthen the company’s positioning in the physical access control market. EastCoast is used by over 600 clients around the world including EY, Bosch, and SSAB.

Precise recently unveiled a pair of deals to supply its YOUNiQ access control platform to customers to integrate flexible access permissions to different zones and face biometrics capabilities, respectively.

EastCoast had revenues of SEK 16.8 million ($1.8 million) in the 12 months prior to September 30, 2021, 76 percent of which was recurring, and an EBITDA margin of 17.4 percent. Precise plans to integrate products based on biometrics with EastCoast’s portfolio.

“Precise has been a technology frontrunner and innovator for decades. During recent years, we have expanded our offering significantly, introducing new biometrical applications to penetrate new end-markets in need of convenient identification and increased security,” states Precise CEO Stefan K. Persson.

“We are very happy to acquire EastCoast Solutions, a profitable and growing SaaS-company with an exceptional track-record. Precise’s and EastCoast Solutions’ offerings will combined be very attractive and powerful, and we see significant cross-selling opportunities in offering YOUNiQ to EastCoast Solutions’ customers and EastCoast Visit to Precise’s customers.”

EastCost becomes a wholly-owned subsidiary of Precise, with the purchase price paid in a combination of cash and 6,982,473 newly-issued Precise shares. The purchase price represents multiples of 4.6-times revenues and 25 times EBITDA, based on EastCoast’s 2020 earnings.

The transaction is expected to close this week, and is not subject to further conditions.

Directed issue raises $2.5M

Precise has announced that the capital raise has been completed at SEK 23 million ($2.5 million), after the Board of Directors increased it in response to high demand.

The share issue is intended to finance a portion of the EastCoast acquisition, with the number of shares and their price determined as part of an accelerated book-building procedure, Precise says.

Originally the company intended to raise approximately SEK 20 million ($2.2 million).

The company’s Board decided that the flexibility provided by this arrangement, though it deviates from shareholders’ preferential right, is the most appropriate for Precise and its shareholders, as it brings in enough capital to finance the upfront cost of the acquisition in a timely and cost-effective way.

Precise issued 28,750,000 shares to Swedish and international investors at a price of SEK 0.80 ($0.09) per share. That price is nearly a 15 percent discount on Precise’ closing price on the Nasdaq Stockholm exchange at the close of November 29, 2021 trading.

“We are grateful for the support coming from new investors in this directed share issue,” states Precise’s Chairman of the Board Torgny Hellström. “With a focus on SaaS-growth, innovation and convenient and secure biometric identification, we are looking forward to the continued journey together with EastCoast Solutions and our new shareholders.”

The increase in shares issued amounts to a dilution of approximately 7 percent, according to the announcement.

Precise has been looking to increase its recurring revenue, which has roughly doubled from a year ago, as it recovers from the supply chain issues widely experienced during the pandemic.

Related Posts

Article Topics

 |   |   |   |   |   |   |   |   | 

Latest Biometrics News

Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Read This Week

Featured Company

Biometrics Research

Biometrics White Papers

Biometrics Events

Explaining Biometrics