Viisage to buy Integrated Biometric Technology
- By William Welsh
- Nov 16, 2005
Viisage Inc. is acquiring Integrated Biometric Technology Inc., a provider of fingerprinting technologies, in a cash and stock deal.
The deal is the first acquisition for the Billerica, Mass., company since L-1 Investment Partners LLC of Stamford, Conn., announced that it would be investing in Viisage.
L-1 will acquire 60 percent of the outstanding interests of Nashville, Tenn., IBT for $35 million in cash and plans to acquire the remaining 40 percent by Jan. 30, 2006, for an additional $25 million.
L-1 is expected to complete its investment in Viisage in December. When that occurs, Viisage will acquire the outstanding stock of IBT for five million in newly issued shares of pre-reverse split Viisage common stock. Viisage also will pay L-1 $35 million in cash, thus transferring full ownership of IBT to Viisage.
The acquisition will add more depth to Viisage's portfolio of solutions by automating the electronic processing of fingerprints for criminal background checks and searches with the FBI's Automated Fingerprint Identification System, the company said.
The acquisition is expected to produce revenue in the $30 million to $35 million range and be accretive in 2006.
IBT's customers include federal, state and local governments as well as the financial services industry. The company won a four-year contract worth more than $100 million in 2004 from the Transportation Security Administration to process applicants and provide criminal background checks and screening for hazardous materials transportation licenses in 34 states. The company also works with 34 state departments of motor vehicles.
William Welsh is a freelance writer covering IT and defense technology.