The deal is expected to total $15 million, half in cash and half in a share-swap.
US company Security Biometrics (OTCBB:SBTI) is about to acquire Israeli company WonderNet. Security Biometics is a stock market shell with several subsidiaries that develop applications using WonderNet's biometric signature technology. Security Biometrics has $8 million in revenue a year.
The deal is expected to total $15 million, half in cash and half in a share-swap. Under the deal, WonderNet's owners will own 30% of the merged company. WonderNet CEO Shai Waisel said the company's shareholders would make a profit on the deal, since investments in the company had been at very low valuations.
Founded in 1998, WonderNet develops biometic technology to authenticate ordinary written signatures. The company has an estimated annual revenue of $1.5 million. Shareholders include founders Waisel and Oren Grozovik; Bank Hapoalim (LSE:BKHD; TASE:POLI), which uses the company's technology; private Israeli investors; and Wacom, which decided to dilute its stake in the company.
Published by Globes [online] - www.globes.co.il - on February 16, 2004