Fingerprint Cards Acquires Iris Technology Specialist Delta ID for $106M
The deal represents a considerable expansion of Fingerprint Cards’ reach in the global biometrics market.
NEWARK, Calif. – Swedish biometrics provider Fingerprint Cards on Wednesday announced it has purchased iris technology supplier Delta ID for $106 million in combined cash and debt. The acquiring company said the transaction would allow it to offer a combination of iris and fingerprint recognition products.
Delta ID develops and markets a range of iris recognition solutions, including its ActiveIRIS iris recognition system for mobile phones, PCs, tablets and vehicles. The ActiveIRIS system includes a cloud-based solution, and is also certified for use for India’s national biometric identity system.
“Through the acquisition we will be able to provide multi-modal solutions to the market, combining iris recognition with our fingerprint sensors. Hence, the products will be both more secure and user-friendly,” says Fingerprint Cards CEO Christian Fredrikson. “The acquisition is consistent with our strategy to expand and maintain our leadership position within biometry, from our leading position within fingerprint sensors for smartphones.”
Based here in the Silicon Valley, Delta ID was founded in 2011 and has 15 employees. Existing customers include Samsung, HP and Fujitsu. Delta ID will be integrated into Fingerprint Cards’ organizational structure and employees from both companies will be co-located when possible, according to a press release.
“We are very excited to become part of the Fingerprints team. The potential synergies are obvious as we are both leaders in our respective fields and also very complementary. Together, we will create new exciting solutions for our customers and make biometrics authentication more secure and convenient for the users,” says Dr. Salil Prabhakar, president and CEO of Delta ID.
The acquisition is expected to be accretive to EPS in 2017 and is financed through a mix of existing cash facilities and debt. Following closing the acquisition is expected to have a marginal effect on the operating margin.
The transaction is subject to regulatory approvals and expected to close during spring 2017.
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