Morgan Keegan Repeats Identix as Outperform
Morgan Keegan repeated its outpeform rating on Identix (IDNX ) after the personal verification device maker agreed to merge with Visionics VSNX, another identify verification company, in a $600 million deal. The terms of the deal call for 1.3436 newly issued Identix shares for each Visionics share. Analyst Brian Rittenbur calls it a "great" transaction.
Rittenbur says the combined entity will be largest and most diversified in entire industry, with the leader in facial biometrics (VSNX) merging with the leader in finger biometrics (IDNX). He notes that the combined company will have more than $100 million in revenue, $90 million in cash, no debt and a market capitalization of more than $500 million. He says that this is a true merger, with the new entity 52% controlled by IDNX shareholders and 48% by VNSX shareholders. The deal is expected to close by end of June 2002.