A strategic review launched by Fingerprint Cards‘ (FPC) board of directors this past summer has reached a conclusion: the company will divide its operations into two main subsidiaries.
One of them, to be called “Fingerprint Technology Company”, will remain focused on mobile biometrics, the area in which FPC made its name over the past decade as a supplier of fingerprint sensors during the mobile revolution. The subsidiary will be based in Shanghai, and overseen by Ted Hansson, who will act as its President.
The other subsidiary, based in Zug, Switzerland, will comprise what was formerly called Fingerprint Cards’ “Payments & Access” business line. Dubbed “Fingerprint Cards Switzerland”, the subsidiary will be headed by President Michel Roig.
While the latter business line has been exploring new opportunities in both the payments and access control sectors in recent years, in a statement announcing the changes, Michel Roig emphasized “the massive growth opportunity in payments,” adding that basing the subsidiary in Switzerland “has significant benefits as our customers and partners express a strong preference to work with European based technology providers and partners.”
Fingerprint Cards has been particularly focused on opportunities in the emerging concept of biometric payment cards featuring embedded fingerprint sensors.
The company’s strategic review was first announced in July by Board Chairman and former CEO Johan Carlström, who explained at the time that the review would consider “strategic alternatives” aimed at maximizing the company’s potential. The menu of options included acquisitions, spin-offs, and new listings, he said, adding that “[t]here has been considerable interest for Fingerprints from a number of different players, which has triggered the review process.”
Now, in the company’s announcement of its conclusion, Carlström emphasized the logical soundness of its subdivision. “The Mobile and Payments industry ecosystems differ in many respects including structure, regulatory environments, and geography,” he explained. “The world’s top three payment card producers are all based in continental Europe, while most of the largest smartphone OEMs are headquartered in Asia.”
Fingerprint Cards CEO Christian Fredriksson added that the separation of the two businesses “enables clearer and more efficient day-to-day operations while both subsidiaries continue to benefit from access to the same unique IP as owned by the Group.”
(Originally posted on FindBiometrics)