BIO-key to focus on Law Enforcement and Biometrics; Proceeds eliminates all debt
WALL, N.J., May 23 /-- BIO-key International, Inc. (BULLETIN BOARD: BKYI) , a leader in wireless public safety and finger-based biometric identification solutions, today said that it has closed the previously announced agreement to sell its Fire Safety business to ZOLL Data Systems, Inc. for $7 million in cash. Proceeds from the transaction will be applied to repaying debt and will be used for working capital purposes to accelerate investments in mobile applications for the Law Enforcement market and biometrics. ZOLL Data Systems is a subsidiary of ZOLL Medical Corporation which designs and manufactures resuscitation devices and solutions used by clinicians and EMS professionals.
"With this sale, BIO-key has the opportunity to more intensely focus its resources on accelerating the company's best-in-class applications for mobile and handheld devices used by law enforcement and public safety professionals as well as advanced identification solutions for businesses and government," said Michael DePasquale, BIO-key's Chief Executive Officer.
Tom Colatosti, BIO-key's Chairman added, "The proceeds from the sale will also eliminate all of our convertible debt and all our interest payments. In one grand move, we were able to sell a non-strategic business unit for approximately three times what we paid for it or nearly two times revenue; dramatically improve the quality of our balance sheet; and significantly improve our operating liquidity. With a stronger balance sheet, improved liquidity and a more focused marketing effort, I believe we will be able to accelerate organic growth and be better positioned for some new bold strategic alternatives."
BIO-key International, Inc., headquartered in Wall, New Jersey, develops and delivers advanced identification solutions and information services to law enforcement departments, public safety agencies, government and private sector customers. BIO-key's mobile wireless technology provides first responders with critical, reliable, real-time data and images from local, state and national databases. BIO-key's high performance, scalable, cost-effective and easy-to-deploy biometric finger identification technology accurately identifies and authenticates users of wireless and enterprise data to improve security, convenience and privacy and to reduce identity theft. Over 2,500 police, fire and emergency services departments in North America use BIO-key solutions, making BIO-key the leading supplier of mobile and wireless solutions for public safety worldwide.(http://www.bio-key.com/)
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