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Intelli-Check Inc., a developer of document verification systems, yesterday signed a letter of intent to acquire all of the assets of The IDentiScan Co. LLC for $1 million in stock. The purchase is subject to the satisfactory completion of due diligence and execution of a definitive agreement expected in the fourth quarter.
IDentiScan, a Ellington, Conn.-based technology company, designs and sells age verification terminals that assist merchants of age-restricted products such as alcohol and tobacco in determining whether the purchaser of these products is of legal age for their purchase.
The announcement comes as a surprise from the two companies, who have had the distraction and expense of a costly patent infringement lawsuit proceeding through the courts. The litigation between the companies would end upon closing of the transaction and the ability of Intelli-Check.
"The natural synergies and the combination of the two companies' patented technologies, will substantially strengthen our already sophisticated intellectual property portfolio," said Frank Mandelbaum, chairman and CEO of Intelli-Check. "The acquisition will allow us to effectively provide a more cost effective alternative to that segment of the market requiring only age-verification."
In light of the recent terrorist attacks in New York and Washington, Mandelbaum said Intelli-Check's ID-Check technology is fully capable of increasing security and deterring terrorism at high profile buildings and airports by verifying the validity of drivers licenses, state issued ID's and military identification. "The recent purchase of our ID-Check units by the Department of Defense for the purpose of increasing security at the entrances to the Pentagon by deploying these units in the near future is proof of this capability," he said.