BIO-key International has completed a major new investment and licensing deal, the company has announced. The agreement was made between the company and parties affiliated with the China Goldjoy Group, formerly known as World Wide Touch Technology (Holdings) Ltd (WWTT), as well as a CGG subsidiary and another investor.
The major component is BIO-key’s purchase, at $12 million, of a digital payments-related IP portfolio from CGG subsidiaries. But the deal also involves the issuance of $10.5 million in Series B-1 Convertible Preferred Shares to a CGG subsidiary and another investor, plus $550,000 in Series A-1 Convertible Preferred Shares. In return, BIO-key gets a 16-patent portfolio featuring technologies related to mPayments, online payments, and biometric authentication.
In a press release announcing the deal, BIO-key CEO Mike DePasquale asserted that the company’s IP acquisition through the deal strengthens BIO-key’s ability to “aggressively pursue sales and business development opportunities in new markets on a global basis.” He added that the deal “along with our recent $8.45 million capital raise allows us to enhance the capabilities of other BIO-key solutions while developing new turnkey hardware/software products.”
It’s an exciting time for BIO-key, apparently; the company will discloses its Q3 fiscal results next week, and given its IP investment with CGG, it appears the company has good reason to anticipate future growth.
November 11, 2015 – by Alex Perala