Precise Biometrics merges with Fingerprint Cards

Swedish biometric companies Precise Biometrics and Fingerprint Cards have announced a merger, aiming to create a more formidable presence in the global biometrics market. The transaction, valued at approximately SEK 135.7 million ($14.5 million), involves Precise Biometrics absorbing Fingerprint Cards. Shareholders of Fingerprint Cards will receive nine new shares in Precise for each share held. The deal has been sanctioned by the boards of both companies and provides a 12% premium over Fingerprint Cards' last trading price on Nasdaq Stockholm.

The merger is expected to deliver annual cost synergies of SEK 45 million (about $4.8 million), representing 29% of the projected combined revenue for 2025. Achieving these synergies will incur SEK 12 million ($1.3 million) in restructuring expenses. Post-merger, the companies plan to initiate a SEK 110 million ($11.8 million) share rights issue to bolster growth initiatives and exploit identified operational synergies. In anticipation of these developments, Fingerprint Cards has secured SEK 20 million ($2.2 million) in bridge financing to support its ongoing operations.

According to Torgny Hellström, Chairman of Precise Biometrics, the merger leverages the respective strengths of the two firms to enhance competitiveness and financial robustness. The integration of Precise's software and Fingerprint Cards' hardware offerings will enable the combined entity to deliver comprehensive solutions across multiple biometric modalities such as facial, fingerprint, palm, and iris recognition. This strategic consolidation is expected to enhance cross-selling opportunities and broaden the customer base.

The biometrics sector is experiencing increased fragmentation and demand for scalable solutions, fueling the rationale behind this merger. Fingerprint Cards, having transitioned from a mobile-centric focus to a broader biometric systems provider, views the merger as an extension of its strategic evolution. Precise Biometrics CEO Joakim Nydemark highlights the potential of the unified entity to capture new market segments with an enhanced commercial portfolio.

Looking forward, the combined company's registration is anticipated by the start of the third fiscal quarter of 2026. During this period, Fingerprint Cards' shareholders will hold a 47% stake in the merged entity. The potential for further acquisitions remains on the agenda, as both companies explore opportunities to expand their platform's capabilities further. As the merger progresses, industry observers will be keen to see how this newly integrated entity positions itself against competitors and adapts to the evolving market landscape.