A Nasdaq-listed US company has bought a majority stake in South African biometrics technology firm Biometrics.co.za, in a move that industry players believe will open up the US and South American markets for the Cape Town-based group.
At this stage, neither the US company`s identity nor the value of the deal can be revealed, pending an official announcement at the end of this month. However, it is understood that Biometrics.co.za`s new majority shareholder is a big player in the US gun-safe market, and is seeking to expand its focus on biometrics technology.
Biometrics.co.za CEO Dr Harold Kimmel explains that the deal was clinched after the US group started using the local firm`s software.
"They liked our product so much they decided to buy a majority stake in the company. Though I cannot, at this stage, reveal the size of the deal, I can say that it`s big enough for me to be very happy," Kimmel tells ITWeb.
He adds that one of the US firm`s biggest clients is the National Rifle Association (NRA), which has eight million to nine million members across the US. The NRA approves only one type of gun-safe, manufactured by Biometrics.co.za`s new main shareholder, which now solely uses the South African company`s biometrics technology.
Kimmel expects the deal to greatly boost Biometrics.co.za`s sales and profits, as it has opened new markets for the company across the North and South American continents.
"Americans are not keen to buy products from foreign companies, so now we have an American company marketing our product in the US. This will create many opportunities," he states.
The US deal has also opened doors for Biometrics.co.za`s product in South America, necessitating the time and attendance and access control software to be translated into Spanish for that market.
While it is currently impossible to gauge the effects the enlarged markets will have on Biometrics.co.za`s bottom line, Kimmel is confident the deal will begin paying off towards the end of the year. He points out that a US-based client has already placed an up-front order for 600 biometrics software packages.
Biometrics.co.za was established five years ago and has a client base of more than 30 countries and also has representatives in the UK, Canada, Tanzania, Nigeria and Botswana.
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