VC firm L-1 invests the money to help the identity authentication and biometrics specialist make acquisitions.
By Priya Ganapati
October 6, 2005
Identity authentication and biometrics specialist Viisage said Thursday venture capital firm L-1 Investment Partners will invest $100 million to help it make acquisitions, sending its stock up 40 percent.
Under the agreement, Stamford, Connecticut-based L-1 will buy 19 million newly issued shares of Viisage at $5.25 per share.
The news sent the company’s stock soaring on the stock market. Viisage shares rose $1.42, or 40 percent, on the Nasdaq to close at $5.06.
Viisage will initiate a one-for-two-and-a-half reverse stock split. Post-split, L-1 is expected to control 28 percent of the company. Based in
Viisage expects to close the transaction by the end of 2005.
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