Saflink will buy SSP-Litronic for $49M
4:11 PM PST Monday
Bellevue-based Saflink Corp. announced plans to buy SSP Solutions Inc. of Irvine, Calif., in a stock-for-stock transaction valued at $49.5 million.
Saflink, maker of biometric security software, will exchange six-tenths of a share for each share of SSP Solutions -- also known as SSP-Litronic -- which makes identity management products.
The deal is expected to close in the second or third quarter of 2004. When the deal is done, SSP-Litronic will operate as a wholly owned subsidiary of Saflink. Glen Argenbright, president and CEO of Saflink, will retain those positions in the new company.
On Monday, Saflink announced a fourth-quarter loss of $2.9 million, or 11 cents per share, compared with a loss of $1.4 million, or 8 cents a share, a year earlier. Quarterly revenue fell to $488,000 from $1 million in 2002.
For fiscal 2003, the company announced a loss of $10.7 million, or 42 cents a share, which compares with a loss of $10.9 million, or 73 cents a share (after a preferred stock dividend) in 2002. Revenue stayed about the same both years -- approximately $2 million.
"Given our announcement today of our agreement to merge with SSP-Litronic, combined with our acquisition of the physical biometric technology from BSG, we believe that we have positioned ourselves to pursue an even greater portion of the largest smart card plus biometric initiatives in both the government and commercial sectors," said Argenbright, in a statement.
Saflink in December announced that it acquired BSG in a $4.1 million deal.
seattle.bizjournals.com
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