L-1 Identity Solutions [ID] has agreed to acquire Canada’s Bioscrypt Inc. in a $44 million stock-for-stock transaction, in a deal that would give it capabilities and customers in the biometric-based physical and logical access control market. “With this acquisition, L-1 strengthens its leadership position in protecting and securing personal identities and assets by extending into access control, a market that is expected to grow substantially,” says L-1 Chief Robert LaPenta. L-1 says the biometrics- based product piece of the world market for electronic physical access control this year is estimated to be about $210 million. Bioscrypt’s products include multi-factor authentication readers featuring fingerprint or 3-D face biometric matching for facility access, embedded solutions for integration of biometrics into products designed by Original Equipment Manufacturers and logical access control. Last fall one of Bioscrypt’s authentication readers was selected by the Transportation Security Administration for inclusion on a Qualified Products List for access control at U.S. airports. The company has over 400 global customers and in installed base of over 260,000 access control units. Some of its customers include Kronos, Honeywell [HON], Lenel [UTX], and ADI. The deal is expected to close in the first quarter of 2008 subject to meeting certain closing conditions, including the approval by Bioscrypt’s shareholders.
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