FacePhi acquires Teralco Computer Technologies

The new company’s integration will help Facephi to improve its business plan.

The acquired company’s largest customers include town councils and regional authorities, in addition to banks and insurance companies such as Cajamar, Sanitas and Ocaso

FacePhi buys the technological company Teralco for 1.4 million euros to boost its expansion

Madrid, 24th September 2014.- FacePhi, specialists on face recognition technology, agreed today with the technological company Teralco the commitment for the acquisition of the 100 percent of its capital. The payment (around 1.4 million euros) is 7.5 times its Ebitda – Earnings Before Interest, Taxes, Depreciation, and Amortization- of 2014, just as FacePhi informed today to the Spanish Alternative Investment Market (MAB).

This acquisition will be signed in the following days after the “Due Dilligence” and is carried out through a combination of both cash payment and share-based payment. It will be a deferred payment without interests which will run for the next three exercises. Nevertheless, this corporate operation will enable FacePhi to improve its Business Plan for the next years.
With the integration of this technological firm, which is specialized in developing and marketing software solutions for private and public sector, FacePhi reinforces its expansion strategy to get to the final customer without an outside company. Furthermore, it will improve the management model automation and open new business lines in areas such as Mobility, Cloud Computing and Business Intelligence.

Despite the present environment, Teralco is one of the most profitable technological companies with 823.697 euros of incomes in 2013 and 187.447 euros of Ebitda. In addition, it has a wide range of clients, in both private and public sectors which represents 65 percent and 35 percent of its incomes, respectively. In the private sector, among its customers there are main banking institutions and insurance companies such as Cajamar, Caixa Penedès (current Banco Sabadell), Sanitas and Ocaso as well as the software multinational company known as Information Builders and alliances with AWS (Amazon Web Services). On the other hand, in the public sector, Teralco has contributed to the modernisation and efficiency of organizations such as the Spanish Public Expenditure Monitoring and the provincial councils of Alicante, Sevilla, Almería and Ciudad Real, among other places, promoting the citizens’ access to the e-government.

Table 2. Distribution of revenues of Teralco by sectors

Distribution of revenues of Teralco by sectors

Data source: Teralco

Advantages of Biometrics

The integration of all processes to get to the final customer, obtained through this corporate operation, will allow the facial recognition technology of FacePhi to be even more effective detecting fraud and phishing. This is a main advantage in the financial sector where the online banking users have increased a 75 percent since 2007 in Spain.

Moreover, the impression of the banking sector about this technology in the Latam market has made FacePhi deploys it in a network of 15 South American banks.

Additionally, MarketsandMarkets asserts that the facial recognition methods will move more than 5.000 million euros in 2018, which will grow in a 45 percent annual rate because of the importance of this technology in the financial, touristic and vehicle sectors.

In fact, the increasing interest in this sector has raised the price shares of FacePhi in the Spanish Alternative Investment Market, which has been re-evaluated more than a 100 percent since its debut. Facephi Biometrics is a public company listed on the MAB (Spanish Alternative Investment Market), specialized in developing and marketing facial recognition software and is one of the most relevant manufacturers in the world, working for banking, vehicle, private security and public sectors. FacePhi focuses its activity on mobile devices, reducing fraud in accounts. It has direct presence in 18 different countries, among which we found Latam strategic markets such as Panama, Chile, Colombia, and Argentina. Its facial recognition software uses own algorithms, which makes it the original owner of the technology.

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