L-1 acquires ComnetiX for $12.5 million

Not content with its on-going efforts to master the American biometrics market, industry heavyweight L-1 Identity Solutions (formerly known as Viisage before its merger with Minneapolis, Minnesota-based Identix Technologies), last week announced it had purchased Ontario, Canada-based ComnetiX for approximately $12.5 million, or $0.82 per share. The Stanford [Michael: Should it be Stamford?], Connecticut-based L-1 has been on a buying spree of late, most recently purchasing Reston, Virginia-based SpecTal, a privately held consulting firm focused on the intelligence community, for a massive $100 million. The company previuosly acquired Moorestown, New Jersey-based Iridian Technologies ($35 million) and California-based Securimetrics ($28 million). Both produced iris-scanning technology. The company, under the name Viisage also acquired Integrated Biometric Technology and the AutoTest division of Openshaw Media Group. In February 2006 it acquired SecuriMetrics.

The deal with ComnetiX is intended to improve L-1’s position in the booming Canadian identity solutions market. ComnetiX, strongly positioned as a biometrics provider for law enforcement — the company was a leader in helping the FBI develop standard protocols for the transmission of electronic fingerprints, known as Electronic Fingerprint Transmission Standards (EFTS) — has averaged approximately $9 million in revenue over the past two years, and L-1 anticipates a growth to $13 million by the end of next year. Current customers include Toronto Police Services; CISC (Criminal Intelligence Services Canada); the Department of Criminal Justice Services for the state of New York; Minesterio De Justicia, Spain; and the Boston Police Department.

L-1’s main competitors include Digimarc ID Systems, AssureTec,

Smiths Heimann, 3M/AiT, Cognitec Systems, and Imageware Systems.

-read more in this company news release