EXHIBIT 99.1
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L-1 IDENTITY SOLUTIONS TO ACQUIRE CANADIAN IDENTIFICATION
SOLUTIONS COMPANY COMNETIX
STRENGTHENS FINGERPRINT BIOMETRIC TECHNOLOGIES AND SERVICES IN NORTH AMERICA;
ADD GREATER PRESENCE IN LAW ENFORCEMENT ACROSS THE U.S. AND CANADA
STAMFORD, Conn. & ONTARIO, Canada, Nov 15, 2006 -- L-1 Identity Solutions, Inc.
(NYSE: ID) and ComnetiX(TM), Inc. (TSX: CXI), today entered into a definitive
agreement for L-1 to acquire all of the outstanding shares of ComnetiX.
Headquartered in Ontario, Canada, ComnetiX is a leading provider of biometric
identification and authentication technologies to private and public sector
companies in Canada and the United States.
The Company provides fingerprinting services to a significant portion of the
Canadian market, facilitating tens of thousands of criminal background checks
each year through its chain of offices. The acquisition is expected to increase
revenue generated by L-1 Identity Solutions fingerprint products and services by
creating an important presence for the company in the Canadian market and adding
a highly-complementary base of customers to the portfolio, particularly within
the law enforcement community.
The acquisition is structured as an arrangement under the Canadian Business
Corporations Act and is expected to close in the first quarter of calendar 2007,
subject to satisfaction of a number of customary conditions, including approval
by two-thirds of applicable ComnetiX shareholders and two thirds of applicable
ComnetiX warrant holders, voting as separate classes, as well as requisite court
approval in Ontario, Canada and other regulatory approvals. The transaction will
be submitted to ComnetiX security holders for approval at a special
stockholders' meeting to be held in early 2007. Irrevocable voting agreements in
favor of the transaction have already been signed by directors and officers of
ComnetiX representing approximately 28 percent of the outstanding shares of
ComnetiX. Similar agreements have been signed respecting approximately 67
percent of applicable outstanding warrants.
Under the terms of the definitive agreement, L-1 Identity Solutions is expected
to pay ComnetiX shareholders approximately $12.5 million, or approximately $0.82
per share, in cash for all shares of ComnetiX common stock that are issued and
outstanding at closing. Additional terms of the transaction will be more fully
described in the management proxy circular mailed by ComnetiX to security
holders who are entitled to vote at the special meeting of stockholders.
Following closing of the transaction, ComnetiX shares will cease trading on the
Toronto Stock Exchange and the company will operate as a wholly owned subsidiary
of L-1 Identity Solutions.
"ComnetiX presents a solid investment for L-1 Identity Solutions: a company with
an established customer base whose most recent financial results reflected a 25
percent increase in sales in a rapidly growing Canadian market that is just now
embracing a move from ink- to electronic-based fingerprinting for identity
management," said Robert V. LaPenta, Chairman, President and CEO of L-1 Identity
Solutions. "The company's approach to delivering customer-focused solutions,
coupled with their strong ability to market to state and local agencies will be
invaluable to our organization. Add to this their complementary services
business that provides fast, convenient and professional electronic
fingerprinting for criminal and non-criminal purposes, and we will have a
compelling combination."
For the year ended August 31, 2005, the company had sales of approximately $9
million. For the nine months ended May 31, 2006, ComnetiX had revenues of
approximately $9 million. The company will report full year 2006 results prior
to November 30, 2006. L-1 Identity Solutions expects ComnetiX to add $13 million
in revenue next year and to be cash flow positive.
Bernard W. Crotty, Chairman and CEO of ComnetiX indicated, "We believe that L-1
is the right company to acquire ComnetiX as it will give the Company access to
additional markets and provide great opportunities for our leadership team and
the entire organization." "Joining the L-1 portfolio of companies is a great
opportunity for ComnetiX and its employees" remarked Edward Escubedo, President
of ComnetiX. "Our presence in Canada together with our customer focused
solutions will further strengthen L-1's already impressive offerings."
ComnetiX was founded in 1980 by Edward Escubedo and for decades has been an
integral contributor to the standardization of finger-based biometric
technologies. In the early 1990s, the company helped the Federal Bureau of
Investigations (FBI) and other organizations to develop standard protocols for
the transmission of electronic fingerprints, known as Electronic Fingerprint
Transmission Standards (EFTS). ComnetiX was the first company in the US to
transmit federally compliant electronic fingerprints to the FBI, and the first
in Canada to establish a national distributed criminal intelligence database. In
addition to maintaining 10 fingerprint centers across Canada, ComnetiX operates
more than 40 applicant fingerprinting services locations throughout the United
States. The company has a significant installed base of customers for live scan
products and services in New York and Georgia.
ComnetiX maintains a customer-focused solution approach, targeting criminal
justice, law enforcement, criminal intelligence, airline and transportation and
commercial business markets. Customers today include Toronto Police Services;
CISC (Criminal Intelligence Services Canada), the Department of Criminal Justice
Services for the state of New York; Minesterio De Justicia, Spain; the Boston
Police Department and others.
The company will continue to operate out of its current locations in Canada and
the United States. Upon close of the acquisition, ComnetiX management will
report into the Integrated Biometric Technologies division of L-1 Identity
Solutions.
About L-1 Identity Solutions
L-1 Identity Solutions, Inc. (NYSE: ID) consists of, among other businesses, the
historic operations of Viisage Technology, Inc. and Identix Incorporated, which
merged on August 29, 2006. L-1 Identity Solutions, together with its portfolio
of companies, offers a comprehensive set of products and solutions for
protecting and securing personal identities and assets. Leveraging the
industry's most advanced multi-modal biometric platform for finger, face and
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iris recognition, our solutions provide a circle of trust around all aspects of
an identity and the credentials assigned to it -- including proofing,
enrollment, issuance and usage. With the trust and confidence in individual
identities provided by L-1 Identity Solutions, government entities, law
enforcement and border management agencies, and commercial enterprises can
better guard the public against global terrorism, crime and identity theft
fostered by fraudulent identity. L-1 Identity Solutions is headquartered in
Stamford, CT. For more information, visit www.L1ID.com.
About ComnetiX(TM) Inc (www.ComnetiX.com)
ComnetiX(TM) Inc provides secure identification and
authentication solutions to both the public and private sectors throughout North
America. ComnetiX offers multimode biometric identification solutions for use in
areas such as applicant screening, financial services, health care,
transportation, airlines and airports, casinos and gaming, and energy and
utilities. Clients include American Airlines, Lehman Brothers, New York City
Health and Hospital Corporation, New York State Division of Criminal Justice
Services, Toronto Police Service Board, Boston Police Department and the Royal
Canadian Mounted Police. ComnetiX is also Canada's premier applicant
fingerprinting services company, facilitating tens of thousands of criminal
background checks each year through its chain of ten offices across Canada. In
addition ComnetiX has established more than 40 applicant fingerprinting services
locations throughout the United States.
Forward Looking Statements
This news release contains forward-looking statements that involve risks and
uncertainties. Forward-looking statements in this document and those made from
time to time by L-1 Identity Solutions through its senior management are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements reflect the Company's
current views based on management's beliefs and assumptions and information
currently available. Forward-looking statements concerning future plans or
results are necessarily only estimates, and actual results could differ
materially from expectations. Certain factors that could cause or contribute to
such differences include the ability of ComnetiX to obtain requisite shareholder
approval for the proposed acquisition, the ability of the parties' to obtain
requisite court approval for the plan of arrangement, and the ability of the
parties to otherwise close the transaction on a timely basis. Additional risks
and uncertainties are described in the Securities and Exchange Commission
filings of the L-1 Identity Solutions, including the Company's Quarterly Report
on Form 10-Q for the quarter ended September 30, 2006. L-1 Identity Solutions
expressly disclaims any intention or obligation to update any forward-looking
statements.
SOURCE: L-1 Identity Solutions, Inc.
L-1 Identity Solutions
Doni Fordyce, 203-504-1109
dfordyce@l1id.com
or
ComnetiX Inc.
Kelly Reid, 905-829-9988
Investor.relations@comnetix.com
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