Toronto, Ontario, July 18, 2000
Mytec Technologies sells non-core alarm monitoring business to Chubb Security Systems for 28.5 million
Mytec Technologies Inc., a leading provider of biometric security technologies, today announced it has sold its non-core alarm monitoring business to Chubb Security North America, wholly-owned by Williams PLC, (UK), a world leader in security services and solutions.
The sale of all of the shares of Counterforce Inc., for $28.5 million in cash, closed July 18, 2000.
Counterforce, a wholly-owned subsidiary of Mytec, provides alarm monitoring and response services to more than 680 independent alarm company dealers and partners who sell, install, and service commercial and residential security alarm systems. In the fiscal year ended December 31, 1999 Counterforce generated revenues of approximately $14 million.
"This sale reflects three very positive realities," said Pierre Donaldson, Mytec's President and CEO. "First, Mytec's core biometrics business is ready to stand on its own, having reached the stage where our technology is primed for commercialization. This sale will benefit Mytec by allowing us to focus and dedicate our resources and energy to our newly launched Bioscrypt family of biometric solutions. Second, in Chubb, we have found a company that can really add value to Counterforce, its dealers, customers and employees. Counterforce is now part of a premier security company. Third, as a result of the sale, there is tremendous potential for our two companies to work together on biometric applications in the future."
Donaldson said now that the divestiture has been successfully completed, Mytec "can step up the pace of market development. The proceeds will help fuel our growth and catapult us into a leadership position in biometric technology markets. These markets are poised for significant expansion, driven by the need for biometric-enabled mobile-commerce, wireless e-commerce, network and web access security solutions. The time is right for Mytec to emerge as a pure, focused and strong player in biometrics."
Dennis Hollingshead, Chairman of Mytec, commented "This is a positive transaction for all three companies. We see enormous potential benefits for Counterforce's dealer network and our employees through Chubb's now expanded market share leadership position. For Mytec, the opportunity to prosper as a single purpose company is outstanding."
Counterforce will continue to operate as a stand-alone entity under the Counterforce name from its current Toronto location.
"We are taking this opportunity to build upon the dealer relationships established by Counterforce and to forge a relationship with Mytec in the application of its technologies," said Bruce Currer, President of Chubb Security North America. "Since we intend to continue to run the business as a stand-alone operation with the same subscriber services, the change in ownership will be virtually seamless to Counterforce's employees, dealers and customers."
The companies also said that, to ensure the complete confidentiality of customer information, Counterforce's database would not be amalgamated with Chubb's. Also, any changes in management or staffing are likely to be minimal as a result of the change in ownership.
About Mytec
Mytec Technologies Inc. specializes in the development and licensing of biometric technologies - software and standalone hardware - to Original Equipment Manufacturers and other customers requiring state-of-the-art network and physical access security. Providing unparalleled authentication that goes well beyond traditional identity methods such as passwords or entry cards, Mytec's technologies - embodied in the Bioscrypt family of branded products - have the potential to enable secure wireless e-commerce. Mytec's patented Biometric Encryption process links a 128-bit digital key with a biometric image to create a secure package of information known as a Bioscrypt. Using the Bioscrypt, information can only be unlocked using a fingerprint. The Company's biometric encryption technology applies to all biometric images, including fingers, iris, face and voice.
About Chubb
Chubb is a world leader in electronic security systems and services. The Company is a wholly owned subsidiary of Williams PLC (UK) and has operations in 23 countries including North America, Europe, Asia and Australia. Chubb North America has a network of sales, installation and service offices as well as a dealer program through its SMC business. Through regional Monitoring and Call centers, Chubb offers superior customer care and 24 hour monitoring, 7 days a week. Chubb provides the latest in alarm, card access and video solutions to major corporations, financial institutions, educational facilities, health sciences and carriage trade residential customers. |
