BIO-key has completed its acquisition of PistolStar, a provider of large-scale Identity-as-a-Service and Identity and Access Management solutions.
First announced a few weeks ago, the deal was valued at $2.5 million, with BIO-key anticipating an immediate uptick in revenues to result from the acquisition. That’s thanks in large part to PistolStar’s PortalGuard solution for multi-factor authentication and single-sign on for the enterprise.
The acquisition was funded in part by $1.575 million raised through the sale of a $1.811 million Senior Secured Convertible Note to Lind Global Macro Fund, LP. This financing has been arranged on a one-year term, and is secured with a lien on BIO-key’s assets.
Commenting on the acquisition’s completion, BIO-key CEO Michael DePasquale called it “an exciting strategic initiative that expands BIO-key’s multi factor authentication capabilities beyond our core strength in biometrics so that we can offer a complete suite of Identity Access Management and Identity-as-a-Service solutions to a broader universe of enterprise customers.”
“The financing’s 12-month repayment schedule and above-market conversion price provided an attractive source of capital for our company, as we progress toward initial cash flows from our contracts in Africa and capitalize on our strong position to solve enterprise security vulnerabilities created by the rapid increase in work-from-home, resulting from the global coronavirus pandemic,” he added.
For PistolStar’s part, founder and President Tom Hoey said that acquisition will open up “a much larger addressable market and far greater opportunities for both companies,” adding that the combination of their technologies will deliver “a very compelling solution to address diverse user populations and budgets.”
Going forward, Hoey will now serve in a consulting position for BIO-key as the company integrates PistolStar into its operations.
July 2, 2020 – by Alex Perala