“The platform is already compatible with BIO-key’s fingerprint-based biometric authentication solutions, and also supports authentication factors associated with Windows Hello, FIDO/WebAuthn security keys, among others.”
BIO-key has announced a definitive agreement to purchase PistolStar, a provider of on-premise identity and access management solution for large enterprises.
The latter firm will be purchased for $2.5 million, with PistolStar’s founder to take on a consulting role with BIO-key after the acquisition.
In a statement announcing the acquisition, BIO-key asserted that it “will be immediately accretive to both revenue and operating income” after the deal closes. The company noted that PistolStar’s 2019 revenues amounted to $1.65 million.
BIO-key added that PistolStar’s flagship product, PortalGuard, is used for multi-factor and Single Sign On authentication by hundreds of clients and millions of end users around the world. The platform is already compatible with BIO-key’s fingerprint-based biometric authentication solutions, and also supports authentication factors associated with Windows Hello, FIDO/WebAuthn security keys, among others.
“PortalGuard and BIO-key will allow enterprises to leverage whatever legacy authenticators they have, and then elevate their capabilities using biometrics where it makes sense,” commented BIO-key CEO Michael DePasquale, adding that in addition to improving BIO-key’s income, the integration of PistolStar brings the benefit of “enhancing our suite of solutions to include an IDaaS and significantly expanding our global sales potential, while reducing time to value.”
News of the deal arrives about a month after BIO-key’s announcement that it had raised over $2 million through the sale of a secured note to Lind Global Macro Fund. The acquisition is being funded through on-hand capital, an escrowed deposit, a 12-month promissory note, and other short-term financing, and is expected to close by the end of the second quarter of this year.
June 10, 2020 – by Alex Perala