The new CEO of Fingerprint Cards is publicly mulling over the idea of acquisitions to help accelerate the company’s expansion beyond the mobile biometrics market, and it’s prompting some market speculation, reports Bloomberg.
Such a move would make sense. The replacement of former CEO Jörgen Lantto with Christian Fredrikson, who took the helm last month, was largely about preparing the company for that expansion, with FPC explicitly setting out plans to move into smart cards, the automotive sector, and the Internet of Things after the company established a strong, leading role as a sensor supplier to mobile OEMs over the past few years. The company’s institutional knowledge still revolves around mobile biometrics, though, and so it may be necessary to acquire other specialists in order to grow into these new areas quickly.
Bloomberg reports that Fredrikson’s comments, made during a recent interview, set off a bit of market speculation as investors tried to anticipate which companies FPC might seek to acquire. Next Biometrics, a biometrics company that has been sharpening its focus on the smart card market, saw its stock rise 6.3 percent.
Of course, Fredrikson did not offer any specifics on acquisition plans, nor did he put a number on how much the company will increase investments. But he did display a certain level-headed realism, noting that while FPC expects to take up to 70 percent of the fingerprint sensors marketshare this year, strong competition will prevent it from keeping it in the long term.
Source: Bloomberg Technology
(Originally posted on FindBiometrics)