This acquisition provides Viisage with a market leadership position in identity document authentication to complement the company’s core competencies in secure identity credentials and biometrics.
This addition to Viisage’s product portfolio is expected to extend reach into existing Viisage markets and provide a critical component to Viisage’s comprehensive offering for new markets in need of identity solutions. The iA products are embedded into the recently announced Viisage Identity Solutions Suite, beginning with the Viisage PROOF offering.
Viisage has acquired all outstanding shares of iA stock for approximately $5 million in cash and 3.9 million newly issued shares of Viisage common stock as well as the assumption of $2.9 million in debt.
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The exchange is based upon the 20-day market closing price average of Viisage common stock as of two days prior to the completion of the transaction, which is $6.74. The transaction is expected to be accretive to Viisage on an EBITDA, operational cash flow and EPS basis in 2005.
“Imaging Automation provides a strong strategic fit for Viisage’s identity solutions. The Company’s market leading products provide both a complementary offering to our existing customers as well as high value entrée into new markets such as finance, healthcare, and hospitality where the need to authenticate identity documents is at an all-time high and increasing dramatically,” said Bernard Bailey, president and CEO of Viisage.
“Further, iA provides an opportunity for us to leverage their existing relationships in federal programs such as the US-VISIT and Registered Travelers Pilot programs.
We expect the combination of our two businesses and products will create a company uniquely positioned for solving critical issues around the integrity of an individual’s identity, beginning with the up-front proofing and document authentication processes and continuing through credential usage.”
The acquisition of iA enhances Viisage’s existing global footprint, bringing installed customers in state, local and federal government agencies in countries including the <?xml:namespace prefix = st1 ns = “urn:schemas-microsoft-com:office:smarttags” />United States, Canada, Hungary, Australia, Sweden, Finland, and the U.K.
Many of iA’s customers are focused specifically on significant border management solutions, providing valuable traction with a key component of Viisage’s overall strategic growth plan. In the fiscal year ending September 30, 2004, on an unaudited basis, iA’s revenues were approximately $6 million, more than a 100 percent increase over its revenues in its prior fiscal year.
