Identity solutions provider HID Global has acquired fingerprint sensor develop Lumidigm, extending its portfolio of authentication products and allowing it to deliver new solutions into more applications.
Terms of the deal were not disclosed. HID Global’s parent, Sweden’s Assa Abloy, said Lumidigm is expected to have $25 million in sales in 2014 and that the deal will be immediately accretive to earnings.
“Lumidigm’s proven product portfolio will enhance our current strong authentication offerings, especially for healthcare, financial institutions and other high-security environments,” says Denis Hebert, president of HID Global. “The company has unique technology protected by a large patent portfolio and proprietary algorithms and has achieve a strong penetration in key emerging markets including South America and Africa.”
Lumidigm, which is based in New Mexico, develops and sells fingerprint sensors based on multispectral imaging technology, which works well with non-ideal skin conditions, damaged fingerprints, and in adverse environmental conditions.
HID Global, which is based in California, offers a variety of access control readers for smart cards and biometrics, smart credentials, card printers, RFID tags, software, and other related technology. HID Global says its goal is to extend Lumidigm’s imaging technology beyond fingerprint and hand-based applications into other applications such as iris, facial and other smart imaging systems.
“The combined company will also have the opportunity to apply multispectral imaging capabilities to credential acquisition and authentication, gesture recognition, and other image-based process control systems, making multi-factor authentication on a single, integrated device a reality,” says Bob Harbour, executive chairman of Lumidigm.
HID Global says that demand is growing for biometric solutions across various vertical markets such as banking and healthcare. The company says its global reach and product development strengths will be used to exploit a variety of new market opportunities for Lumidigm’s technology and product portfolio.
Lumidigm’s technology is currently used by four of the top five major banks in Brazil and four of the top six major banks in South Africa.
Lumidigm’s management will report to HID Global’s senior vice president and Chief Technology Officer. Lumidigm has 33 employees. Imperial Capital served as Lumidigm’s financial advisor on the deal.