BIO-key to sell its law enforcement division to InterAct
BIO-key wants to focus solely on biometrics and identity management
BIO-key International Inc
- By Doug Beizer
- Aug 14, 2009
. plans to sell its Law Enforcement Division to InterAct911 Mobile Systems Inc., an affiliate of privately held InterAct Public Safety Systems, for $11 million, BIO-key officials announced today.
BIO-key officials say selling off the division will let the company focus on the growing biometric and identity management market.
BIO-key provides a wireless public safety and finger-based biometric identification solutions.
The need for security and identity management solutions is growing, BIO-key officials said. The most recent report issued by the International Biometrics Group projects that annual biometric industry revenues will grow from $3.4 billion in 2009 to $9.4 billion by 2014.
“This sale gives us the opportunity to become a leading, growing and profitable biometric company by focusing all our resources and investments in the high-growth, high-margin biometrics market,” said Mike DePasquale, BIO-key's chief executive officer.
InterAct Public Safety Systems’ CEO Andrew J. "Flip" Filipowski said the transaction will positions InterAct as the world's largest public-safety software company, with more than 2,000 customers across three continents.
“Looking ahead, we will build on the best attributes of both mobile product suites to give first responders the most advanced resources with which they can protect their communities," Filipowski said.
BIO-key and InterAct Public Safety Systems have a long-standing working relationship, company officials said. BIO-key technology is a part of InterAct’s Connections Framework, a collection of products that improve the efficiency of emergency response operations, such as geographic information systems, records management systems and next generation 9-1-1 phone controllers.
The $11 million deal includes $7 million in cash at closing and a $4 million guaranteed secured note issued by the buyer, according to BIO-key officials.
BIO-key International is headquartered in Wall, N.J. InterAct Public Safety Systems is based in Winston-Salem, N.C.
Doug Beizer is a staff writer for Washington Technology.