BIO-key International, Inc., an innovative provider of biometric authentication and security solutions, today announced the completion of its purchase of PistolStar Inc., an established provider of large-scale on-premise and Identity-as-a-Service (IDaaS) identity and access management (IAM) solutions, for $2.5 million.
The acquisition, which is expected to be immediately accretive to BIO-key’s revenue and operating income, was partially funded by $1.575 million in proceeds from the sale of a $1.811 million Senior Secured Convertible Note to Lind Global Macro Fund, LP. The note is convertible into shares of BIO-key common stock at a price of $1.16 per share and is secured by a first priority lien on substantially all of BIO-key’s assets and properties.
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PistolStar’s flagship product is PortalGuard, a highly regarded enterprise multi factor authentication and single sign-on platform deployed and used by millions of users at hundreds of customers around the world.
PortalGuard delivers a flexible but uniform cloud or workstation multi factor authentication logon experience to secure enterprise user authentication and cloud application access. PortalGuard supports nearly every cloud authentication federation standard, all major directories, and a wide variety of authenticators, including BIO-key’s world-class biometric solutions.
BIO-key CEO Michael DePasquale commented, “The PistolStar acquisition is an exciting strategic initiative that expands BIO-key’s multi factor authentication capabilities beyond our core strength in biometrics so that we can offer a complete suite of Identity Access Management and Identity-as-a-Service solutions to a broader universe of enterprise customers.
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“The financing’s 12-month repayment schedule and above-market conversion price provided an attractive source of capital for our company, as we progress toward initial cash flows from our contracts in Africa and capitalize on our strong position to solve enterprise security vulnerabilities created by the rapid increase in work-from-home, resulting from the global coronavirus pandemic.”
PistolStar Founder and President, Tom Hoey, added, “The combination of PistolStar and BIO-key creates a more comprehensive suite of multi factor solutions with a much larger addressable market and far greater opportunities for both companies. Importantly, PortalGuard’s customized multi factor configuration capabilities, combined with the deep biometric expertise of BIO-key, will provide a very compelling solution to address diverse user populations and budgets.”
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