FPC CEO expects biometrics growth, efficiency, capital gains from Precise merger

Fingerprint Cards (FPC) CEO Adam Philpott believes the company’s planned merger with Precise Biometrics will create a far more competitive Scandinavian biometrics player.

Lund-based Precise Biometrics and Gothenburg-headquartered FPC will hold a pair of Extraordinary General Meetings on April 30 to finalize shareholder votes on the proposed merger.

Speaking to Biometric Update, Philpott argues the companies face the same structural challenge. “We’re sub‑scale, we’re small, we don’t have the dollars to invest on our own,” he says. “As you put the companies together it becomes, from an economic perspective, a much more efficient entity because you can remove duplicate costs.”

The proposed merger will create a “Nordic biometric powerhouse,” according to Philpott, which will unlock enhanced profitability, new investment capacity and a platform for further consolidation in the sector.

Both firms are listed on Nasdaq Stockholm — with Precise in the Small Cap segment — and have separate executive teams, back‑office functions and overlapping product groups. Philpott said eliminating this duplication will free capital for growth rather than administration.

The companies estimate 45 million Swedish kronor (approximately US$4.8 million) in cost synergies annually, enough to make the combined business EBITDA‑positive on a pro‑forma basis. “You unlock organic growth, you unlock inorganic investment, and you deliver returns to shareholders,” he says.

Philpott says they’ve scouted other possible acquisition targets. “We’ve identified six or seven other companies that would be really good roll-up plays to both improve profitability but also increase capability,” he says.

The merger would set them up for this greater inorganic growth potential, with a view to creating “a more integrated stack, this one-stop shop, if you like, of potential.”

Philpott says both boards unanimously support the merger, and early conversations with shareholders and customers have been “incredibly positive.”

Asked about geographic reach, Philpott says the two companies fill gaps in each other’s coverage. Precise is stronger in the Nordics, both have solid positions in Europe, and FPC has a more developed go‑to‑market presence in the U.S. — a market both see as a major growth opportunity following recent investments in 2025.

He says the merged company will be selective in Asia, focusing on high efficacy, easy‑to‑use biometric solutions rather than commoditized offerings. This is something of a strategic departure for FPC, which once made 98 percent of its revenue in China from products like smartphones and door locks.

Philpott says this mix of geographic overlap and complementarity creates “real commercial synergies” in global sales coverage.

A broader biometric stack

The merger brings together Precise’s cloud‑based, decentralized biometric software with FPC’s on‑device hardware and sensor systems. Both companies offer fingerprint recognition, but each brings additional modalities. FPC has iris technology used in automotive applications, while Precise offers palm and facial recognition. Philpott said the combined portfolio will allow customers to choose the modality that fits their use case, or combine several for stronger authentication.

He also sees long‑term potential in bridging physical and digital identity systems. “Biometrics for the workplace, then logging into your PC — if we can combine that, we know you’re physically in that location,” he says. “That starts to converge physical and digital security for a much more positive outcome. That’s not a short-term play, that’s a longer-term play, but it has a high potential for improved security outcomes.”

Philpott said the merged company will be able to offer a more complete solution to major global customers already working with either Precise or FPC. Cross‑selling opportunities, a stronger balance sheet and a unified product roadmap will, he argues, create a more resilient business with greater wallet share.

“The main opportunity here is to create a Nordic biometric powerhouse,” he says. “These two businesses make more sense together than they do separately. When you combine them, you get much more focused capital on growth outcomes and customer outcomes. This is a really exciting development in the biometric market.”

Precise will absorb FPC, with shareholders in the latter receiving 9 new shares in Precise for each Fingerprint Cards share, irrespective of share class. In their last day of trading on the Nasdaq Stockholm, Precise shares closed at SEK 2, representing a premium of approximately 12 percent on FPC class B shares, which closed at SEK 16. The deal values FPC at approximately SEK 135.7 million ($14.5 million). The boards of directors at both companies have approved the joint merger plan.

The merging companies expect cost synergies of 45 million Swedish kronor (approximately US$4.8 million) annually, which is equivalent to 29 percent of their combined 2025 pro forma revenue. Realizing those synergies will take SEK 12 million ($1.3 million) in restructuring costs.

Once merged, Precise and FPC plan a share rights issue to raise SEK 110 million ($11.8 million) to invest in accelerating growth, take advantage of identified synergies and support continued global expansion. Fingerprint Cards has also secured SEK 20 million ($2.2 million) in bridge financing.

At the end of the merger, Fingerprint Cards’ shareholders will own a 47 percent stake in the combined company. The companies expect to register the merged entity around the beginning of the third fiscal quarter of 2026.

Precise CEO Joakim Nydemark noted the fragmentation in the biometrics and identity management market and increasing demand for scalable solutions. He said the combined company will be able to offer “a stronger commercial offering for existing customers and new market segments” when the merger was announced.

Article Topics

access control  |  biometrics  |  fingerprint biometrics  |  Fingerprint Cards  |  mergers and acquisitions  |  Precise Biometrics