“Precise’s and EastCoast Solutions’ offerings will combined be very attractive and powerful, and we see significant cross-selling opportunities in offering YOUNiQ to EastCoast Solutions’ customers and EastCoast Visit to Precise’s customers.” – Stefan K. Persson, CEO, Precise Biometrics
Precise Biometrics has completed its acquisition of EastCoast Solutions, positioning the company for further expansion into the access control market.
In announcing the acquisition this week, Precise noted that EastCoast is the largest provider of visitor management technology in Sweden, where Precise Biometrics is headquartered. Precise added that EastCoast’s solution is being used by 600 clients globally, and that 76 percent of EastCoast’s SEK 16.8 million in revenues (over the 12 months leading up to September 30 of 2021) were recurring revenues, helping to illustrate the company’s “strong track record of profitable growth.”
What’s more, EastCoast’s client roster includes big names such as Bosach, EY, and SSAB.
The acquisition is expected to improve Precise Biometrics’ recurring SaaS revenues. Meanwhile, Precise will seek to integrate its biometric technologies into the EastCoast Solutions platform, thereby creating opportunities to improve sales and revenue.
“We are very happy to acquire EastCoast Solutions, a profitable and growing SaaS-company with an exceptional track-record,” said Precise Biometrics CEO Stefan K. Persson. “Precise’s and EastCoast Solutions’ offerings will combined be very attractive and powerful, and we see significant cross-selling opportunities in offering YOUNiQ to EastCoast Solutions’ customers and EastCoast Visit to Precise’s customers.”
Having established itself as a prominent provider of fingerprint algorithms for mobile sensors during the smartphone biometrics boom over the past decade, Precise Biometrics has in recent years sought to expand into new market areas. The launch of its facial recognition-driven YOUNiQ solution in 2019 marked the company’s entry into the access control space; last month, Precise announced that YOUNiQ had been integrated into a cloud-based access control system from Telcred.
Now, the “acquisition of EastCoast Solutions provides us with a solid foundation to continue building a leading SaaS company with innovative global biometric offerings,” explained Precise Biometrics Board Chairman Torgny Hellström.
The transaction amounts to about SEK 80 million, or roughly $8.88 million, on a cash and debt free basis, with a total upfront purchase price of SEK 25 million now having been paid to EastCoast International AB, a company owned by EastCoast Solutions’ co-founders. Precise Biometrics helped to pay for the acquisition via the issuance of 6,982,473 shares of Precise Biometrics through a set-off issue to the seller, with the remaining amount of SEK 18 million paid in cash. Two further installments will be paid for the acquisition over the coming two years.
November 30, 2021 – by Alex Perala