GENEVA, Switzerland -- Galton Biometrics (GALB.PK) has launched a take over bid for Liska Biometry LSKA.OB in a cash and stock deal.
Galton has offered a share deal under which existing Liska shareholders would receive one Galton share for every 3 Liska shares, making the offer worth approx $7.25m. Galton has 24,000,000 shares outstanding and would therefore increase its shares out by 5,176,667 should the acquisition be consummated.
Liska Biometry owns technology which is a component that Galton uses in its total solution package. Galton has exclusively licensed the Liska technology for the United Arab Emirates market place. It is not currently anticipated that Galton would use the technology in other areas of the world, but Galton needs to ensure that they need to use the Liska technology, that it is financially stable and robust. Recent filings submitted to the SEC by Liska - it's recently filed 10Q SB - notes a weak financial position. Galton's board feels that the acquisition of Liska will allow both companies to more effectively utilize the overall resources of the two companies, thus strengthening and stabilizing them both.
Galton is offering as part of the deal all the funding needed by Liska to complete development of the BIN Binary Identifying Number for the Liska development. This funding would allow Liska's technical team to further develop its existing technology, and eradicate time delays on work in progress and potential contracts.
Galton will be seeking some key management resignations Galton has secured some existing shareholder support for the deal and has sent notice to Liska to formally vote on the deal.