Aluf Holdings, Inc. (OTC:AHIX) recently announced that it intends to offer private placement financing of up to $4,000,000 in order to complete a major acquisition in the Biometric Space.
Growth of biometric technologies has been in response to global security threats. Terrorist attacks, airport security initiatives, and attempts to lower crime rates have brought an increasing investment in biometric security systems.
The biometrics market poised for exponential growth with estimates that reach $23.54 billion by 2020 and near term expansion of approximately 22.9% between now and the year 2020.
Reuters reported the cost of cyber-crime alone is an estimated $388 billion to $1 trillion. Many of these attacks are due to vulnerability exploits in authentication software, and web-based authentication networks. Hyper-positive human identification services and products represent our top priority in both the private and public sectors.
Aluf Holdings is poised to capture aggressive market share through strategic acquisitions such as the intended 100% acquisition of a premier biometric technologies company with current annual revenues in excess of $10MM.
Robust capitalization will allow AHIX to complete these planned acquisitions and engage a $40 million+ sales pipeline over the next three years.
The Target Acquisition IP portfolios show an impressive 45 years of innovative advancements with technologies and software systems currently in use by local, state and federal law enforcement agencies and internal court systems nationwide.
With Clients like the California Department of Justice, California Department of Motor Vehicles, and the Chicago Police Department, they have a strong foothold in the industry.
ROI will be driven by development of an expanding $40,000,000 sales pipeline growing the Company’s technology services footprint into new markets and increasing customers, with the technology and software services markets are opportunity rich, particularly in the areas of biometrics security, defense, and the “Internet of Things”.
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Why it Matters
High Margin Business
The company is software focused and does not require the capital expense of a hardware manufacturing operation and can quickly adapt to new devices and technologies as they emerge.
Consistent Financial Performance
The Company has maintained a profitability average of 11.3% over a five year period beginning in 2012. Their products and services position us to grow aggressively over the next four years at a rate of 21.0% for the period 2018 to 2022.
Focused Revenue Mix
The Company to rebrand their customer service identity, managing a growing portfolio of Technical Maintenance Contracts. Over 75% of their Customer Markets are contracted services provided to state and local governments.
Strategic Geographic Sales Positioning
The Company currently services 95% of the Western US, providing standard, and bespoke software and technology solutions across its Systems Sales, Facilities Management, and Vehicle Installation revenue mix categories.
A Strong Foothold in the Industry
The target company has been providing capture software that is device independent for 10 years for military and law enforcement applications.
Rapidly Growing Industry
Initiatives taken by the governments across the world to adopt biometrics systems for the purpose of identification and authentication, introduction of e- passports, use of biometrics in criminal identification are some of the drivers that are fueling growth of the biometrics system market.
Massive Vertical Markets
The company’s authentication technologies and products will be marketed across industries to both consumers and institutions. Current key vertical markets include Defense, and poised for Financial Services, Health Care, Manufacturing, Legal and Criminal Justice. Use of biometrics in e-commerce and cloud computing solutions for biometrics are the key opportunity areas for the market.
Growing State Government Market
Pressured to reduce costs due to tight budgets, more states are outsourcing computer functions and data processing. States are taking a harder look at IT contracts and legacy systems after complaints about costs, quality, and usability. The company is positioned for modernizing mainframe applications as they have been working with agencies to migrate mainframe applications to open systems.