Saflink and IdentiPHI to merge

Thursday, September 6, 2007

KIRKLAND, Wash., and AUSTIN, Texas--Saflink, an identity and access manufacturer working with biometrics, and IdentiPHI, a privately held provider of enterprise security solutions and consulting services, have announced a definitive merger agreement. The two companies will combine to form a single publicly held company.
Saflink will acquire all of the outstanding shares of IdentiPHI in a stock-for-stock transaction where all of the outstanding shares of IdentiPHI will be exchanged for an aggregate total of 614,981,516 shares of Saflink common stock. After completion of the deal, former security holders of IdentiPHI would hold roughly 75 percent of the new company, which will be known as IdentiPHI, going forward, with headquarters in Austin, Texas.
With Saflink stock trading at roughly 7.5 cents on Sept. 5, the deal is worth a theoretical $48 million. According to May 15 filings with the SEC, Saflink lost $3.5 million over the previous three months, with revenue of roughly $500,000.
The management of the two firms will combine, with Saflink chief executive Steve Oyer serving as chairman and chief executive officer and current IdentiPHI head Peter Gilbert becoming the vice chairman and senior vice president of sales and marketing. IdentiPHI alums John Atkinson and Mark Norwalk will serve as president and chief technical officer, respectively. Saflink's Jeff Dick and Brian Wilchusky will become chief financial officer and vice president of marketing.
Oyer called the merger the culmination of his efforts to stabilize Saflink's balance sheet and monetize its core technology. This, he said in early August, would "allow a pursuit of technologies only in the face of sure and current opportunity for a true partner." With IdentiPHI as that partner, the company will look to offer a flexible platform to launch additional integrated biometric and security solutions into the commercial and government markets.