When does the merger end?
The transaction is expected to close in the second calendar quarter of 2006 and is subject to customary regulatory approvals and other closing conditions, including approval by Viisage and Identix shareholders at their respective stockholder meetings
Message 22054739
I assume the merged companies will trade under VSIG symbol?
Nothing has been said about what the trading symbol will be. As far as the corporate name, we'll have to wait and see.
It's status quo for Viisage
Despite HQ move, Billerica voice will 'maintain its autonomy,' CEO says
By TOM SPOTH, Sun Staff
BILLERICA - It will be business as usual at Viisage's Concord Road offices this year despite the company's blockbuster deal to buy its chief rival in the biometrics industry, a top company official said this week.
The new company, which has not yet been named, will be based in Stamford, Conn. But offices will remain in Billerica and at the Minnesota headquarters of the acquired company, Identix.
“The Billerica operation will maintain its autonomy and operate as a subsidiary,” said Robert LaPenta, who will take over as chairman and CEO of the merged firm. LaPenta, a successful defense-industry executive, helped engineer Viisage's $770 million buyout of Identix after investing $100 million in Viisage stock last month.
He said few, if any, of the 108 Viisage employees in Billerica will be affected.
Viisage CEO Bernard Bailey will also likely stay on with the new company, but his role has not been determined, LaPenta said. The Viisage and Identix names will probably also be retained.
The Stamford office, currently the home of LaPenta's company, L1 Investments, will be re-purposed to house the new biometrics firm.
“We will suspend our investment and fund raising (activities) and concentrate on this company, integrating it and building it,” LaPenta said.
Over the next three or four months, while getting approval for the merger from shareholders and the Securities and Exchange Commission, executives will plan for the new company's future.
LaPenta said he expects strong growth in the sector over the next decade. “This is going to be a great space in commercial and homeland security,” he said.
Neither Viisage nor Identix is currently profitable, despite a strong presence in the fields of secure credentials and electronic fingerprinting, respectively. According to Viisage, the new company will be positioned to compete for 80 percent of market share in the biometrics industry.
LaPenta said integrating Viisage and Identix products will strengthen relationships with the two companies' existing customers, as well as attract potential new clients. The merger will also help cut costs at the corporate level, he said.
Tom Spoth's e-mail address is tspoth@lowellsun.com.
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