Ideco makes ID move

Johannesburg, 14 Dec 2007

Newly-listed biometrics firm Ideco has finalised its acquisition of 30% of Kroll Background Screening.

The company, which has an option to acquire a further 19% stake in the next two years, will pay R16 million in cash for the initial stake.

Kroll specialises in intellectual risk management and is a player in the credentials verification industry in SA. It is a subsidiary of New York Stock Exchange-listed company Marsh McLennan.

In October, Ideco said it planned to use a large part of the proceeds of the listing to make some acquisitions in complementary markets in which it did not already operate.

At the time, Ideco chairman and CEO Vhonani Mufamadi said the group had already identified what he described as "exciting" acquisition targets.

Making moves

Announcing the deal, Mufamadi says the Kroll purchase adds to its established interest in the identity management arena.

Additionally, Ideco says this acquisition would have enhanced its 2007 annual earnings 4.7%, to 11.5c, from the 10.98c posted at the end of February. This is based on Kroll`s historic earnings.

"Kroll`s range of products and services is complementary to Ideco`s own identity management products and services. Our solutions are based on biometrics, in particular fingerprints, and together we have the ability to enhance the security of the vetting and identity management solutions for our combined client bases. Cementing our relationship with Kroll also presents us with cross-selling opportunities to our respective clients, including the US parent company`s global clients," explains Mufamadi.

Mufamadi notes Kroll is the registered trademark holder of the National Qualifications Register, which has agreements with several South African tertiary education institutions to verify qualifications accurately and quickly.