IDENTOS GmbH has concluded an agreement with Precise Biometrics on the takeover of the Mobile Smart Card Solutions business area, which includes the business operation involving smart card readers under the Tactivo™ brand.
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.
(Learn More about Tactivo. Courtesy of the company and YouTube)
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,” said Håkan Persson, CEO of Precise Biometrics.
“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.”
(Learn More from Precise Biometrics CEO Håkan Persson, being interviewed about the booming market development for fingerprint technology, the advent of new product areas and the challenges ahead. Courtesy of the company and YouTube)
“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,” said Robert Schneider, CEO of IDENTOS.
“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.”
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.
IDENTOS is an innovative security solution provider located in Germany, Canada, and the USA offering authentication and data security products focused on high assurance mobile applications.