Business
L-1 Identity Solutions to Acquire Canadian Identification Solutions Company ComnetiX
L-1 Identity Solutions to Acquire Canadian Identification Solutions Company ComnetiX.
About this update from Currency Exchange International, Corp.
[{"type":"text","content":"\n\n\n\n\nStrengthens Fingerprint Biometric Technologies and Services in North\nAmerica; Add Greater Presence in Law Enforcement Across the U.S. and\nCanada\n\nSTAMFORD, CT. and ON, Nov. 15 /CNW/ - L-1 Identity Solutions, Inc. (NYSE:\nID) and ComnetiX(TM), Inc. (TSX: CXI), today entered into a definitive\nagreement for L-1 to acquire all of the outstanding shares of ComnetiX.\nHeadquartered in Ontario, Canada, ComnetiX is a leading provider of biometric\nidentification and authentication technologies to private and public sector\ncompanies in Canada and the United States.\nThe Company provides fingerprinting services to a significant portion of\nthe Canadian market, facilitating tens of thousands of criminal background\nchecks each year through its chain of offices. The acquisition is expected to\nincrease revenue generated by L-1 Identity Solutions fingerprint products and\nservices by creating an important presence for the company in the Canadian\nmarket and adding a highly-complementary base of customers to the portfolio,\nparticularly within the law enforcement community.\nThe acquisition is structured as an arrangement under the Canadian\nBusiness Corporations Act and is expected to close in the first quarter of\ncalendar 2007, subject to satisfaction of a number of customary conditions,\nincluding approval by two-thirds of applicable ComnetiX shareholders and two\nthirds of applicable ComnetiX warrant holders, voting as separate classes, as\nwell as requisite court approval in Ontario, Canada and other regulatory\napprovals. The transaction will be submitted to ComnetiX security holders for\napproval at a special stockholders' meeting to be held in early 2007.\nIrrevocable voting agreements in favor of the transaction have already been\nsigned by directors and officers of ComnetiX representing approximately 28\npercent of the outstanding shares of ComnetiX. Similar agreements have been\nsigned respecting approximately 67 percent of applicable outstanding warrants.\nUnder the terms of the definitive agreement, L-1 Identity Solutions is\nexpected to pay ComnetiX shareholders approximately US$12.5 million, or\napproximately US$0.82 per share, in cash for all shares of ComnetiX common\nstock that are issued and outstanding at closing. Additional terms of the\ntransaction will be more fully described in the management proxy cir...