South African company Biometrics.co.za has been taken over by Nasdaq-listed Sequiam Constellation Biometrics, a US-based group specialising in biometrics technology.
Dr Harold Kimmel, MD of the Cape Town-based company, says the buyout will not create significant operational changes for Biometrics.co.za.
With the exception of a new MD, Kimmel says there will be no staff changes and the local operation will also retain its current name.
"No American personnel will be joining the operation, and the new MD-elect is also South African," he adds, declining to name him at this stage.
Kimmel will stay on with the company as a consultant.
Sequiam Constellation Biometrics is a big player in the US gun-safe market and is seeking to expand its focus on biometrics technology, Kimmel says. The deal was clinched after the US group started using the local firm`s gun-safe software.
The US group`s biggest client is the National Rifle Association (NRA), which has eight million to nine million members across the US, Kimmel says, adding that the NRA approves only one type of gun-safe, manufactured by Sequiam Constellation Biometrics, which now solely uses Biometrics.co.za`s door-handle biometrics technology.
"There are many synergies between the two companies, which was one of the main factors that made the deal possible. Biometrics.co.za will produce the algorithm for the safe locks, and we also hope to pick up some of Sequiam`s expertise," he comments.
Earlier, Kimmel said he 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.
While it is currently impossible to gauge the effects that 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 representatives in the UK, Canada, Nigeria, Tanzania and Botswana.
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