Fingerprint Cards, Precise position merger as platform for biometrics consolidation

Fingerprint Cards CEO Adam Philpott says the Gothenburg-based company’s “merger of equals” with Precise Biometrics, which was approved on April 30, 2026, is “a natural next step in our transformation.”

Precise will absorb FPC on completion of the merger, which is expected in Q3. Philpott and Christian Lagerling, an investor and advisor to global technology companies, have been nominated to join the united firm’s Board of Directors, effective from the date the merger with Fingerprint Cards is registered by Bolagsverke. The board is expected to have four founding members, but eventually expand to include six.

In FPC’s Q1 interim report, Philpott says the merger of the two Swedish firms creates a “Nordic biometric powerhouse” to compete in the international market, uniting the capabilities of FPC and Lund-based Precise. “The combination strengthens our product breadth across physical and digital identity, expands our commercial reach, and is expected to materially improve the profitability profile of the Combined Company through scale benefits and annual run-rate cost synergies of at least SEK 45 M.”

FPC’s interim report for Q1 2026 says the Combined Company “intends to raise approximately 110 million Swedish kronor through a rights issue to accelerate growth and synergy capture,” and has secured 20 million in bridge financing to support near-term working capital needs ahead of completion.

Financials show wisdom in creating ‘more complete and scalable actor’

For FPC, Q1 2026 revenue totaled SEK 18.9 million, increasing by 4 percent and showing a strong gross margin performance of 62.3 percent. Operating profit was impacted by the cost associated with the merger, which amounted to around 3 million Swedish kronor. EBITDA amounted to a negative SEK 14.1 million. Earnings per share before and after dilution amounted to negative SEK 10.31.

Precise Biometrics showed net sales for Q1 totaling SEK 17.1 million. EBITDA totaled SEK negative 1.4 million. Annual Recurring Revenue at the end of the period was SEK 18.7 million. Total earnings for the period totaled negative SEK 5.6 million, and earnings per share before and after dilution totaled negative SEK 0.07. However, both adjusted EBITDA of (SEK 0.6 million) and cashflow from operations (SEK 3.9 million) were positive.

CEO Joakim Nydemark says “the first quarter of 2026 was characterized by continued uncertainty in the external environment, which is affecting our business in the form of caution in the mobile industry and longer decision-making processes. Net sales are not at the level we want to be, but are in line with the previous quarter and totaled SEK 17.1 million.”

“By combining the strengths of two great Swedish technology companies in the field of biometric security and digital identity, we create a more complete and scalable actor. We assume a clearer position in the value chain, from sensors to software and turnkey identity solutions. Together, we are better placed to address an increasingly complex market, while boosting our commercial reach, innovative force and long-term competitiveness.”

Article Topics

acquisitions  |  biometrics  |  financial results  |  Fingerprint Cards  |  Precise Biometrics  |  stocks