Viisage buys facial recognition firm
- By William Welsh
- Jan 11, 2002
Viisage Technology Inc. has acquired LAU Security Systems for $27.5 million, the company announced Jan. 11.
Viisage will pay a royalty of 3.1 percent of its facial recognition revenue over the next 12 years, up to a maximum of $27.5 million, and assume certain liabilities related to the acquired business.
Viisage of Littleton, Mass., will be acquiring LAU's technology, patents, contracts and distribution channels. Viisage has more than 100 employees and revenue of $19.4 million through the first three quarters of fiscal 2001.
The acquisition of Lau Security Systems will significantly expand Viisage's presence in the federal government, said Tom Colatosti, Viisage's president and chief executive officer.
Colatosti said that "in one grand stroke," Viisage would add to its existing revenue, expand its channels of distribution into civilian agencies and military departments and obtain a highly trained work force.
The acquisition's structure will preserve cash and not dilute the company's stock, he said.
Lau Security Solutions is an independent company being purchased from Lau Technologies. Both companies also are located in Littleton.
Lau Security Solutions was established in 1997 to develop products and services based on emerging facial recognition technology for Department of Defense and federal government customers. The company has contracts and relationships with the departments of Justice and State, Immigration and Naturalization Service and the Federal Aviation Administration.
William Welsh is a freelance writer covering IT and defense technology.