IDEX Acquires Pivotal Algorithm and Patents for Touch Fingerprint Sensors
IDEX ASA announces that it has acquired a world-leading software algorithm and key patents for small area fingerprint touch sensors. This enables IDEX to deliver significantly enhanced security and user convenience for mass market fingerprint sensor solutions equivalent to Apple Touch ID(TM). Combined with IDEX’s recently demonstrated new generation touch sensor hardware, ownership of this algorithm will enable IDEX to provide the lowest cost mobile fingerprint product in the marketplace.
The acquisition includes three valuable patent families for fingerprint ridge matching, with four granted patents, one patent pending and additional patents being filed. Acquired from a well-established US software algorithm developer, these algorithms are the product of more than a decade of dedicated effort, and further strengthens and differentiates IDEX’s valuable portfolio of intellectual property as well as the Company’s competitive position in touch sensors.
“Algorithms are an integral part of securely and efficiently matching each touch of the sensor with the set of authorized fingers. Traditional algorithms have relied on large images where a set of minutiae features can be readily extracted and matched. As touch sensors continue to get smaller, more advanced algorithms become critical in order to deliver reliable fingerprint matching performance. This acquisition represents a significant step forward in our product development roadmap and further differentiates IDEX’s technology from the competition. We believe that algorithms are a fundamental aspect of superior cutting-edge fingerprint sensor products. The patent protected intellectual property that we acquired today delivers twice the performance of any other algorithm that we have tested and is a perfect complement to IDEX’s best-in-class swipe sensor algorithms,” said Dr. Hemant Mardia, Chief Executive Officer of IDEX ASA.
Our unique ability to customize the sensor solution is ideal for meeting the ease of use and security demands of OEMs enabling mobile payments. We have validated that the exceptional quality of IDEX images from our new generation touch sensor offers a breakthrough solution and performance metrics when combined with this algorithm. Furthermore, this algorithm has unique properties of requiring minimum processing power and memory that is increasingly important for embedding within highly secure processing elements that are needed to meet evolving standards for payment transactions.
IDEX is building a complete offering of best in class fingerprint matching solutions for mobility, smart cards and iOT (Internet of Things) mass markets. This includes this newly acquired technology to support matching with small area sensors, existing IDEX embedded swipe sensor algorithms as well as technology being licensed with BIO-key for mobile swipe sensors and medium sized area sensors for ‘on device’ and enterprise applications.
The transaction
IDEX has acquired certain intellectual property assets and rights from Roger Bauchspies. The transfer of title is complete.
The purchase price
The consideration to purchase the patents and algorithm software source code is structured as a royalty based transaction with a guaranteed minimum, of which USD 2 million will be paid in cash imminently. A further USD 2.5 million is guaranteed through minimum royalty payments over a maximum period of five years. Royalty payments will be based on product shipments that include specified intellectual property, and these payments shall be netted against the guaranteed minimum royalty.
The acquired assets
IDEX has acquired specific intellectual property rights from the seller, including four U.S. granted patents, all applications yet to be filed based on the IP, and the algorithm source code.
Other agreements in connection with the transaction
As part of the agreement, the seller, Roger Bauchspies, is retained as a consultant by IDEX ASA to further enhance the algorithm and Intellectual Property.
As further set out below, Roger Bauchspies subscribes for 500,000 shares of IDEX at par value, which shares are contractually restricted shares.
There is no additional compensation outside of what is detailed in the purchase price for the consulting performed by the seller.
Private Placement of 500,000 new shares to Roger Bauchspies
In connection with the foregoing transaction, the board of IDEX ASA has resolved a private placement of 500,000 new shares in the Company to Roger Bauchspies.
The shares to Mr Bauchspies are restricted shares, on agreed terms, and are issued at a subscription price equalling par value per share of NOK 0.15.
The shares are issued under the authorization to the board to issue shares, resolved by the annual general meeting on 7 May 2014. Pursuant to such board authorization, and due to the fact that the share issue is directed, as an incentive, towards the seller of the IP and algorithm as a negotiated and integral part of the transaction, the existing shareholders’ pre-emptive right to subscribe for shares is deviated from.
Following completion of the private placement, the Company’s share capital will be NOK 62,023,329.30 divided into 413,488,862 registered shares each with a nominal value of NOK 0.15.
2 January 2015
About IDEX
IDEX ASA specialises in fingerprint imaging and recognition technology. The company has a strong patent portfolio consisting of more than 20 patent families including more than 200 granted patents, as well as cross licenses with Apple. IDEX has a highly competitive product road map including swipe sensors, touch sensors with disruptive cost positions, and a unique in-glass solution. The company is currently in the process of commercializing the products.
IDEX’s addressable market represents a multi-billion unit opportunity, centered on three core markets: Mobile, ID & Smart Cards and the Internet of Things. IDEX has seen a substantial increase in interest from global OEMs in the last quarters, and is positioned as of three independent players with the relevant IP to capture market share.
IDEX ASA (ticker IDEX) is a Norwegian public company listed at the Oslo Axess market place on the Oslo Børs (Oslo stock exchange). For more information, please visit www.idexbiometrics.com or contact IDEX at mailbox@idexbiometrics.com
For more information on IDEX please contact:
Hemant Mardia, CEO, +44 7788 922 171, hm(at)idexbiometrics.com
Henrik Knudtzon, CFO, +47 9302 2827, hk(at)idexbiometrics.com
IDEX ASA
Web: www.idexbiometrics.com
Twitter: http://www.twitter.com/idexasa
LinkedIn: http://www.linkedin.com/company/idex-asa
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This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
