Identix and Viisage merge to form bio powerhouse
BILLERICA, Mass.--Rival biometric companies Identix and Viisage surprised the security industry last week by announcing plans to merge. The move will create one of the biggest biometric providers in the market.
The stock-to-stock merger is valued at $700 million and is expected to close during the second quarter of 2006. Identix shareholders will receive a fixed exchange ratio of .473 newly issued shares of Viisage stock for each Identix share.
The combined company is expected to have revenues of $220 million and an 80 percent share of the biometric market. Together they will offer a comprehensive line-up of biometric security products, such as face recognition, fingerprint, and imaging identity solutions.
Identix is known as the leader in the biometric fingerprint market, while Viisage has a corner on the driver's license and U.S. passport business.
The combined company will operate from headquarters in Stamford, Conn. Of its 12-member board of directors, Viisage will designate seven and Identix five.
Once the merger is completed, Identix shareholders will own 59 percent of the combined company and Viisage shareholders will own 41 percent.
See the February issue of Security Systems News for comment from Robert LaPenta, chairman and chief executive officer of the newly combined company