Fingerprint Cards (FING) investor relations material

Deal rationale and strategic fit

• Merger creates a global leader in biometrics and identity by combining complementary software, hardware, and identity solutions, expanding commercial reach and addressing market fragmentation.

• The combined entity offers a full-stack, multimodal biometric platform for physical and digital security, serving enterprise, government, and consumer markets.

• Enables upselling, cross-selling, and entry into new segments globally, increasing customer relevance and win rates.

• Establishes a scalable foundation for future organic growth and sector consolidation, targeting acquisition of niche players.

• Strategic timing leverages both companies' strengths and rising demand for secure authentication solutions.

Financial terms and conditions

• Fingerprint Cards shareholders receive nine Precise Biometrics shares per share held, resulting in approximately 47% ownership of the combined company.

• Merger consideration values Fingerprint Cards at SEK 135.7 million, with a 12% premium to the last closing price.

• A rights issue of approximately SEK 110 million is planned to accelerate growth and support expansion, with SEK 80 million in guarantees.

• Completion is conditional on shareholder approval at both companies' general meetings.

Synergies and expected cost savings

• At least SEK 45 million in annual operating cost synergies are expected, mainly from consolidating administration, optimizing sales, and harmonizing product development.

• Synergies represent about 29% of 2025 pro forma revenue and are expected to enable double-digit EBITDA margins, with a pro forma 2025 EBITDA margin of 17%.

• One-time integration and restructuring costs estimated at SEK 25 million, with most synergies realized during 2026.