Identix to Acquire Identicator Technology; To Create the World's Largest Fingerprint Security Firm
SUNNYVALE, Calif.--(BUSINESS WIRE)--Nov. 16, 1998--Identix Incorporated (ASE:IDX), a worldwide leader in providing biometric security and live-scan solutions for governmental, civil, and commercial applications, announced today the execution of a definitive agreement to acquire privately held Identicator Technology Inc. of San Bruno, Calif.
Identicator Technology designs and manufactures fingerprint security systems for information technology (IT), Internet, banking, data/network security and e-business. The melding of the two firms creates a single source for fingerprint-based biometric security solutions for virtually any application. Identicator brings valuable and complementary technologies to Identix, as well as important strategic relationships with major consumer-products and services firms such as Compaq Computer, MasterCard and Unisys.
According to the agreement signed Nov. 14, Identix will acquire all outstanding Identicator Technology shares in exchange for 5,050,000 shares of Identix common stock; the Identix shares to be issued in the transaction are subject to certain lock-up and escrow provisions. The closing is conditioned upon effectiveness of a registration statement with the SEC relating to the issuance of the Identix stock and other customary closing conditions.
Identicator Technology is a leader in developing and manufacturing small, inexpensive biometric security products. Compaq is currently selling the Identicator DFR-200 as a stand-alone peripheral for computer security for $99. Identicator Technology also sells unique "one to many" software that enables extensive search-and-compare operations to be conducted through banks of fingerprint templates; this is a particularly important feature for identifying individuals in civil market applications -- such as drivers licenses and national ID systems.
According to the Nov. 12, 1998 edition of The Wall Street Journal, Brant Jones, Compaq manager of product marketing said, Compaq's customer response to Identicator Technology's add-on fingerprint readers to replace passwords on existing PCs "...has far exceeded our expectations."
In addition to a nationwide base of law enforcement installations, including several statewide networks, Identix systems are in use in more than 50 countries, with installations in major banks, as well as other commercial, police and government applications. Identix also provides a large number of high-end verification solutions for such strategic applications as Oracle's security package for its global customers, who store more than half the world's known data, and for Computer Associates' large-network management software systems.
Initially, Identicator Technology will operate under its current senior management from its current Bay Area location. The acquisition is being accounted for under the purchase method. Identix expects to take a one-time write-off for the value of acquired "in-process" research and development in the quarter in which the transaction closes, which is expected to be the quarter ending March 31, 1999.
Identix Chairman, President and CEO Randall C. Fowler commented, "We are very impressed with the technology developed by Identicator and the strategic relationships they have established. While Identix has established leadership positions in the live-scan, facilities access and high-end data security market places, Identicator Technology has established a leadership position in the information technology access marketplace."
"We think that there are tremendous synergies obtained by joining the two companies," Fowler continued, "and that we truly will be a one-stop shop able to supply leading-edge biometric solutions for most any application. We believe that the demand for biometrics is starting to grow at a faster clip and that the combined company will be in an excellent position to capitalize on growth in the market."
Identicator Technology President and CEO Oscar R. Pieper said, "Identicator Technology is the source of some truly exceptional technology, as is Identix. Because our target market consists largely of market-leading multinational companies, the merger's increase in mass, capital access, worldwide sales and service infrastructure will enhance our client relationships right away. We are physically close together, and, using our complementary technologies, we will maintain our industry leadership position. We at Identicator Technology are excited to be part of the Identix team."
Identix Inc. is a leader in designing, developing, manufacturing and marketing products for the capture and/or comparison of fingerprints for security, anti-fraud, law enforcement and other applications.
The statements in this press release that relate to future plans, events or performance are forward-looking statements, including the statements regarding synergies to be achieved by the merger, the growth in the biometric industry or the completion and accounting treatment of the merger. These forward-looking statements involve risks and uncertainties. Actual results, events and performance may differ materially for a variety of reasons including competition, dependence on strategic partners, development of markets and customer demand for the combined company's products, risks and costs associated with closing the merger and combining the companies, technological development, intellectual property, protection and other risk factors described in Identix's Securities and Exchange Commission filings. Identix undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events.
CONTACT:
Identix Inc.
Investor Relations Department, 408/731-2000
or
Allen & Caron Inc.
Damon Wright (Investors) or Owen Daley (media),
714/957-8440 |
