Swedish biometric and smart card provider Precise Biometrics has established a joint venture in China aimed at penetrating the market for mobile services and biometric security products.
The collaboration – with the Smart Unicorn Group – will see the company’s Chinese patents transferred to a jointly owned company called Smart Unicorn Solutions. Around SEK 4.4 million (around €500,000) in available funds has already by transferred to the joint venture for production, expansion and development of operations. A further SEK 7.8 million (around €800,000) will be transferred later this year.
The non-cash issue of 1,125,000 shares (Prec A) that constitute a part payment for Precise Biometrics’ share of the ownership has also been carried out. The newly issued shares correspond to approximately 1.5 % of the total number of shares after the issue. After these transactions Precise Biometrics will own 30% of Smart Unicorn Solutions.
This latest deal also means that Precise Biometrics will receive an initial order of approx. SEK 7.8 million for the delivery of LoqFlash licences.
Transfer of technology and competence has already started, and biometric and encryption technology from Precise Biometrics will be integrated in the synchronised mobile solutions that Smart Unicorn Solutions develops and markets.
The launch of the joint venture opens up new opportunities for Precise Biometrics’ security products, and it hopes to capitalise on these by positioning itself for future broad-based ID card projects in China.
“It is very gratifying that this new cooperation will enable us to meet increasing demands from the market for both biometric security products and secure mobile services, which already increased sales revenue this year,” says Christer Bergman, president and CEO of Precise Biometrics.
"The Chinese market is huge and the requirements for security, in conjunction with an increased demand for mobile services, have meant that we have been looking for a competent partner with cutting-edge technology in the field of biometrics for some time,” says Dave Wu, CEO at Smart Unicorn Group. “With our telecoms sector coverage, Precise Biometrics’ role in the ID card market and our established network in the government arena, we see great possibilities in the future.”