Merged Precise Biometrics, FPC can cover more ground in tackling fraud crisis

As it integrates Fingerprint Cards’ team and technologies, Lund-based Precise Biometrics invited investors to an open presentation to hear Precise CEO Joakim Nydemark “discuss the strategic rationale behind the merger” of the two Swedish firms, and to address how proceeds from its rights issue will support it, according to a release.

The merger with Gothenburg-based Fingerprint Cards allows Precise Biometrics to expand its offering in biometric security, access and identity, adding to its products in the face, fingerprint, palm and iris modalities. Nydemark says it creates “a stronger company with a more comprehensive offering and greater global market potential.”

“The demand for secure, seamless access and authentication is growing rapidly as AI, digitalization, and an evolving threat landscape reshape security requirements. Through the merger with Fingerprint Cards, we have created a stronger offering and a broader global platform.”

The subscription period for Precise Biometrics’ rights issue of approximately 110 million Swedish krona (US$11.6 million) kicked off on July 29 and runs until August 12, 2026. According to a company post, it is covered by guarantee commitments totaling SEK 100 million ($10.6 million) from, among others, DNB Bank ASA and Schonfeld Global Master Fund LP. Nydemark says the rights issue provides “the resources to carry out the integration, realize the synergies, and invest in continued growth in a market supported by powerful growth drivers.”

As a result of the merger, the number of shares and votes in Precise Biometrics AB has changed. An announcement says that 68,272,083 new ordinary shares have been issued as merger consideration, and that “accordingly, as of 31 July 2026, the total number of shares in Precise Biometrics amounts to 146,736,410, of which 145,651,410 are ordinary shares, carrying one vote each, and 1,085,000 are C shares held by the company, carrying one-tenth of a vote each. As of 31 July 2026, the total number of votes in the company amounts to 145,759,910.”

Complementary offerings bring extended reach, relevance 

In his address to investors, Nydemark highlights the breadth of Precise Biometrics’ offerings and markets, which includes providing fingerprint biometrics for India’s Aadhaar digital identity system. He notes how the market is partially driven by trends like AI, but also by the related need for more secure systems and technologies to protect against new fraud capabilities. In Precise’s view, “biometrics has evolved from a convenience feature into a critical security technology that uniquely combines robust security with a seamless user experience.”

In explaining the rationale behind the merger, Nydemark identifies four fundamental factors. “We have complementary offerings,” he says. “Precise Biometrics historically comes from software, FPC from hardware. Together, we get this mix of products that increase the position in the value chain, but also the broadness of the offer, where we can address not only customers that we had and were able to address on our own, but also other types of customers – and we can get the bigger share of the wallet, if you like, from the customer, since we are growing the value of the offering.”

Synergy, he says, is equally important. “When merging two companies, we have gains from cost synergies, and this includes everything from joint systems, administration, management, the Boards and so on and so forth. And altogether, this adds up to more than SEK 45 million ($4.73 million) that we will be able to execute on here during the fall of 2026. And we will then move into 2027 with the synergies executed.”

Extended reach and relevance, geographically and in terms of addressing the current market, is the third. And number four is “the foundation for consolidation.”

“Bringing these companies together, we get a bigger company, but we also get the capabilities of continued growth with further consolidation when we have shown success with this integration and this merger to create this leader in biometrics and security and identity.”

Nydemark forecasts profitable growth from 2027 onwards, and says that while the goal with the rights issue is to raise SEK 110 million, 100 million is guaranteed already. “The use of these proceeds is to, of course, realize this merger and integration and the synergies so that we can get the companies together, so we can still be able to execute at full speed, but with a lower cost base and also increased revenue moving forward.”

He says that momentum is key to continued success, and that the next round of solutions from the joint firm will address unauthorized access, identity fraud and cyber attacks across physical and logical access, payments and identity management.

Article Topics

biometrics  |  Fingerprint Cards  |  mergers and acquisitions  |  Precise Biometrics  |  stocks