Precise Biometrics divests smartcard business to IDENTOS
21 June 2017 19:17 GMT

Sweden's Precise Biometrics has concluded an agreement with Germany's IDENTOS concering a takeover of the former mobile smart card solutions.

In a statement, Precise Biometrics confirmed this includes the business operation involving smart card readers under the Tactivo brand.

This entails Precise Biometrics further increasing its focus on the Fingerprint Technology business area and freeing up resources for the development and sales of fingerprint technology.

IDENTOS will take over all operations within the business area as of January 1, 2018, which includes the development of new smart card readers under the Tactivo brand, patents, trade mark rights, manufacturing, sales and customer support. IDENTOS will gradually be introduced to existing customers and partners during the second half of the year 2017. Personnel currently working in the Mobile Smart Card Solutions business area will be transferred to the Fingerprint Technology business area. As compensation for the divested business area, IDENTOS will pay Precise Biometrics commission on sales of Tactivo during the period 2018-2020. Precise Biometrics estimates that the commission will not have any significant impact on earnings. 

“This is a good solution for Precise Biometrics that enables us to devote our full attention to developing our offering in the Fingerprint Technology business area. It is at the same time a good solution for our customers and partners, as IDENTOS will make the necessary investments in the new development of Tactivo products to support future mobile devices,” said Håkan Persson, CEO of Precise Biometrics. 

“Identos has extensive experience with mobile card readers in the in the mobile e-health and Government security sectors and views this agreement as an outstanding opportunity to further develop Tactivo in combination with our expertise in the field of mobile encryption solutions. We’ll be working in close collaboration with Precise Biometrics to make the takeover of Tactivo as smooth as possible for existing customers and partners,” said Robert Schneider, CEO of IDENTOS.

The Mobile Smart Card Solutions business area will be reported separately as a divested business operation. Net sales for the business area Mobile Smart Card Solutions amounted to 13.9 Mkr for the full-year 2016. Net sales for the remaining business operations in 2017 are expected to be on par with comparable net sales for 2016, which totaled SEK 83.3 million. The company expects a positive net result for the remaining operations for the full year of 2017.