Oakville, Ont.-based Comnetix Inc. announced a $1.6-million deal on Monday to buy privately held local firm International Fingerprinting Services Canada Ltd.
Both companies are in the biometrics business. Comnetix chief executive Jim Scullion said the deal will make his company one of the largest private sector providers of fingerprint background checks to the RCMP.
One half of the purchase price will be satisfied in cash and the other half with 624,756 Comnetix shares. The deal is expected to close by mid-October.
"As we set out in our prospectus, entry into the fingerprinting services business is a strategic objective -- the acquisition of IFSC provides an established customer base, governmental designations and over 10 years of industry credibility," Mr. Scullion said in a statement.
"It also diversifies our revenue stream by adding fingerprint services revenue to our base of product sales and maintenance contract revenue."
International Fingerprinting has 10 locations across Canada. Fingerprinting services are used for screening job applicants, pardons, international adoptions, child identification and Canadian citizenship.
Both companies were on hand at the Super Ex Monday in cooperation with the Children's Hospital of Eastern Ontario to demonstrate how such technology can help locate missing children.