After a troubling fiscal 2021, Swedish biometric software program maker Precise Biometrics executives have introduced on a associate, promoting about 12 % of the corporate to trade associate Egis Technology.
The deal, which entails frequent shares, if totally exercised, has been valued at SEK 83.1 million, or US$8.28 million. The board of administrators is anticipated to approve the choice at a unprecedented normal assembly in September.
In asserting the position, Precise mentioned the funding will likely be used to proceed its development technique. Adding one other voice into company technique is just not one thing most administration groups favor. The share sale is a milestone within the firm’s historical past.
Egis is taking 10 % of Precise in a direct concern, and guaranteeing 1 / 4 of an additional rights concern, which can carry it to at the very least a 12 % share possession in whole.
Precise has been managing vital change.
In February, executives introduced the corporate’s fiscal 2021, ended December 31 with out fanfare.
Net gross sales dropped from SEK 92.3 million (roughly $9.18 million) in 2020 to SEK 83.3 million ($8.29 million) in 2021. Earnings earlier than curiosity, taxes, depreciation and amortization additionally dropped, from SEK 6.86 million ($680,000) in fiscal 2020 to SEK 1.87 ($190,000) final yr.
And the corporate’s working loss rose from SEK 5.79 million to SEK 14 million.
And, within the third quarter final yr, Precise CEO Stefan Persson left the corporate simply three years after assuming the highest function. Persson had targeted on opening the corporate to extra biometric merchandise whereas nonetheless steering Precise to a future involving extra digital ID merchandise.
A brand new CEO, Patrick Höijer, was ensconced the identical month.
There have been indications that Precise is just not in impartial. In November, the corporate reported that element shortages had been easing within the third quarter final yr. September had proven bettering orders.
And executives agreed in November to purchase customer administration system vendor EastCoast for SEK 80 million, or $8.8 million.
Taiwan-based Egis sells fingerprint sensors for cellular gadgets and software program for FIDO authentication, which may overlap with Precise’s portfolio of biometrics and digital identity options.
biometrics | digital identity | Egis Technology | funding | Precise Biometrics | shares