Completion of Acquisition of Inksure Technologies

RNS Number : 2887B

Spectra Systems Corporation

03 March 2014

 



March 3, 2014

Spectra Systems Corporation

("The Company" or "Spectra")

Spectra Completes the Acquisition of the Assets of Inksure Technologies Inc. ("Inksure")

Spectra Systems Corporation, a leader in machine-readable high speed banknote authentication, today announces that it has completed the acquisition of certain assets of Inksure Technologies as first announced on 1 October 2013. The final consideration amounted to $ 1.36 million which was paid in cash on completion, together with deferred consideration of up to $35,000, dependent upon achieving a commercial milestone.

Spectra now owns substantially all of Inksure's brand protection and tax stamp authentication assets, including importantly its long-standing customer relationships and authentication technology.  Spectra will incorporate the Inksure assets within its existing business and is not making any incremental hires to support the increased revenue.  Inksure's margins have historically been approximately 50%.   

Inksure develops, markets and sells customised authentication solutions designed to enhance the security of documents and branded products, to meet the growing demand for protection from counterfeiting. Inksure has its technology applied to billions of consumer items and high-value documents every month using a proprietary verification system that is available on, among other things, most smart phones.

Inksure had $1.1M in revenue for the year ended 31 December 2012 with a pre-tax net loss of ($0.85M) from continuing operations and gross assets at that date of $1.2M.

Commenting, Nabil Lawandy, CEO of Spectra Systems Corporation, said:

"We are pleased to have completed the acquisition of certain key assets of Inksure which will extend our reach into tax stamps and the authentication of commercial product brands.  In time, we will be able to introduce existing Inksure customers to Spectra's already developed brand authentication technologies in a package which includes track and trace capabilities which leverage the database management capabilities in our Secure Transactions Group.  Our reputation for providing  banknote authentication to G 8 central banks will also allow us to directly,  as well as through partnerships,  upsell to governments looking for higher security tax stamp solutions.  The integration of the Inksure technology, without the need for additional personnel, will increase the margins on the existing book of business immediately".

Enquiries:

Spectra Systems Corporation

Dr. Nabil Lawandy, Chief Executive Officer                                          Tel: [phone]

WH Ireland Limited

Chris Fielding (Head of Corporate Finance)                                          Tel: [phone]

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