Precise Biometrics (PREC) investor relations material

Deal rationale and strategic fit

• Merger creates a global leader in biometrics and identity by combining complementary hardware and software capabilities for a complete offering across physical and digital security segments.

• Addresses a fragmented market, enabling scale, sector consolidation, and positioning for industry consolidation and organic growth.

• Combined entity will offer a full-stack biometric solution, increasing relevance and commercial reach across physical and digital access markets.

• Enables cross-sell and upsell opportunities across broader customer segments and geographies, expanding wallet share.

• Combined company will operate under a unified brand and be headquartered in Lund, Sweden, with a global footprint.

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 approximately SEK 135.7 million, representing a 12% premium to the last closing price.

• Merger consideration includes a premium to FPC shareholders based on current market valuations.

• Rights issue of approximately SEK 110 million planned post-merger to accelerate growth and support expansion, with SEK 80 million in guarantee commitments and underwriting.

• Bridge financing of SEK 20 million secured for Fingerprint Cards' short-term working capital needs until merger completion.

Synergies and expected cost savings

• Annual run-rate cost synergies estimated at a minimum of SEK 45 million, about 29% of 2025 pro forma revenue, mainly from consolidation of administration, streamlined operations, and resource optimization.

• Synergies expected to drive double-digit EBITDA margins post-integration.

• One-time integration and restructuring costs estimated at SEK 25 million, mostly incurred in 2026.

• Most synergies are expected to be realized during 2026, with full run rate by 2027.