Business
BIO-key Announces Definitive Agreement to Purchase Enterprise IAM, IDaaS Provider PistolStar
Accretive Acquisition adds Comprehensive Multi-factor Authentication Platform, Deep IAM Expertise WALL, N.J., June 10, 2020 (GLOBE NEWSWIRE) -- BIO-key
About this update from Bio-key International, Inc.
[{"type":"text","content":"Accretive Acquisition adds Comprehensive Multi-factor Authentication Platform, Deep IAM Expertise\n WALL, N.J., June 10, 2020 (GLOBE NEWSWIRE) -- BIO-key International, Inc. (Nasdaq: BKYI), an innovative provider of biometric software and hardware solutions for enterprise authentication, announced today that it has entered into a definitive agreement to buy privately-held PistolStar, an established provider of large-scale on-premise and Identity-as-a-Service (IDaaS) identity and access management (IAM) solutions, for $2.5 million in cash. PistolStar’s highly complementary team and products will become part of BIO-key’s organization and offerings. The acquisition will be immediately accretive to both revenue and operating income and is subject to customary closing conditions. The transaction is expected to close by the end of Q2 2020. BIO-key will fund the purchase with a combination of cash on hand, an escrowed deposit, short term financing, and a 12-month promissory note. PistolStar’s founder will remain in a consulting role to assist BIO-key after the acquisition. PistolStar’s 2019 revenues were $1.65 million and net profit excluding prior owner compensation of $455K (unaudited). PistolStar’s flagship product is PortalGuard®, a highly regarded enterprise multi-factor authentication (MFA) and single sign-on (SSO) platform deployed and used by millions of users at hundreds of customers around the world. PortalGuard delivers a flexible but uniform cloud or workstation logon MFA experience for cohesively securing an enterprise’s users and cloud applications. PortalGuard supports nearly every cloud authentication federation standard, all major directories, and a wide variety of authenticators, including BIO-key’s world-class passwordless biometric capabilities. PistolStar is complementary to BIO-key in three strategic growth areas. First, it will allow BIO-key to capitalize on a growing demand for biometrics as an MFA factor, by providing “super-MFA” IDaaS, hybrid, or on-prem solutions that offer BIO-key-based advantages and options simply not found in competing MFA offerings, while allowing enterprises to leverage existing investments in factors their users already have. Second, adding PistolStar’s experienced team and outstanding product line significantly expands BIO-key’s market reach and revenue potential, combining an already...