MorphoTrust – Bredemarket

The Most Significant Acquisitions in Biometrics…in 2002 and 2004. (Hang on to your seats.)

(Imagen 4)

What a difference a few years makes.

Identix plus Visionics (plus Digital Biometrics)

Back in 2002, when I was an automated fingerprint identification system (AFIS) product manager at Motorola, another fingerprint company, Identix, made an announcement.

“Identix Inc. and Visionics Corp. announce a strategic merger of equals in an all-stock transaction valued at approximately $600 million.”

The word “synergy” was tossed about, justifiably. You see, while Identix had a long history with fingerprints, Visionics had a long history with facial recognition. So the new combined company would offer both fingerprint and face biometrics, something new for the time. So new that Visionics’ chairman and CEO, Dr. Joseph Atick, made the following statement:

“I believe this merger of equals is one of the most significant events in the history of the biometrics industry to date.”

One little footnote: the acquisition brought fingerprint provider Identix and its chief competitor Digital Biometrics into the same company, since Visionics had acquired Digital Biometrics in 2001.

Viisage plus TDT

Let’s, um, face it: the combined company (known as Identix) was positioned well against Visionics’ chief competitor, a company called Viisage.

But Viisage had plans of its own. Just two years later, it announced its own acquisition:

“In February, it bought Trans Digital Technologies (TDT), which supplies the digital printing system for U.S. passports, for $50 million in cash and stock. Last year, the Arlington, Va.-based TDT landed a five-year, $65 million contract extension with the U.S. State Department for the passport system.”

Which prompted Bernard Bailey, Viisage’s president and CEO, to declare that the acquisition of TDT was:

“…the single most important transformational event in Viisages history.”

So who was the true visionary: Atick, or Bailey? Or maybe someone else we haven’t mentioned yet?

Identix and Viisage…and all the other companies

While Identix and Visionics had some pretty significant components, neither could claim to be a true identity leader. Both companies not only had to compete against the traditional AFIS providers including Sagem Morpho and Motorola, but also against other identity providers. Take Digimarc, which beefed itself up considerably by acquiring Polaroid’s driver’s license business in 2001.

So by 2004, my Motorola “Biometric Business Unit” was competing against a bunch of companies, including:

One of our traditional AFIS competitors, Sagem Morpho.
Identix, including Visionics and Digital Biometrics.
Viisage, including Trans Digital Technologies.
Digimarc’s driver’s license business.

You know how this ended

Several years later, after several mergers (including the one that combined Identix and Viisage to form L-1 Identity Solutions, driven by Robert LaPenta’s L-1 Investment Partners who invested in Viisage), all of these companies would become part of the French aerospace company Safran.

Sagem Morpho and Motorola’s Biometric Business Unit would be a Safran subsidiary called MorphoTrak (with some international pieces tossed over into a division that would subsequently be renamed Morpho).
The others (L-1 plus Digimarc’s driver’s license business, acquired in 2008) would be a Safran subsidiary called MorphoTrust.

Until Safran sold ALL of Morpho, including MorphoTrak and MorphoTrust, to the company that eventually became IDEMIA.

How L-1 Identity Solutions Came To Be

(Imagen 4. Not an exaggeration.)

The history of L-1 Identity Solutions has always fascinated me. I dealt with then-bitter enemies Digital Biometrics and Identix while I was at Printrak, with Viisage while I was at Motorola, and de facto competed with MorphoTrust while I was at MorphoTrak…until MorphoTrust in effect acquired MorphoTrak when IDEMIA NSS was set up and I reported to a supervisor in Massachusetts.

I used to have a PowerPoint presentation that traced the family tree of all of L-1’s acquisitions. Wish I still had it. But here’s a little taste of where things stood before Joseph Atick and Robert LaPenta started combining things:

Identix, while making some efforts in the AFIS market, concentrated on creating live scan fingerprinting machines, where it competed (sometimes in court) against companies such as Digital Biometrics and Bioscrypt.
The fingerprint companies started to compete against facial recognition companies, including Viisage and Visionics.
Oh, and there were also iris companies such as Iridian.
And there were other ways to identify people. Even before 9/11 mandated REAL ID (which we may get any year now), Polaroid was making great efforts to improve driver’s licenses to serve as a reliable form of identification.

(Some former links are dead and were removed from the bullets above. But the Digital Biometrics-Identix court case is described here, and Polaroid’s history with driver’s licenses in Utah is described here.)

Back in 2023 I assembled a list of “Five Topics a Biometric Content Marketing Expert Needs to Understand.” My fifth topic was “How L-1 Identity Solutions came to be.” I claimed I was half joking, but in reality I was completely serious. Despite similar efforts by HID and others (including IDEMIA), the sheer number of companies that combined to form L-1 remains unmatched.

Five Topics a Biometric Content Marketing Expert Needs to Understand

All five.

Why We Fact Check AI

According to Meta AI, “Bredemarket’s history dates back to L-1 Identity Solutions.”

Um, no.

Bredemarket was established in 2020.
L-1 Identity Solutions ceased to exist 9 years before that in 2011, when Safran acquired it.
John E. Bredehoft was never an employee of L-1, or or any of the companies that L-1 acquired.

Now that’s a hallucination.

Contraction

While the words “consolidation” and “contraction” have a similar sound and are often linked, they are actually two separate conditions, as you can see in the identity/biometric industry.

Consolidation occurs when separate entities become one. Ping Identity and ForgeRock (Ping Identity). Sagem Morpho and Motorola’s Biometric Business Unit (MorphoTrak). Digital Biometrics and Identix and Viisage and Visionics and Iridian and ComnetiX and don’t forget the ID part of Digimarc and many others (L-1 Identity Solutions).
Contraction occurs when an existing entity becomes smaller. Hikvision’s reported layoff of 1,000 employees is a recent and relevant example.

“Ah, but Hikvision is a special case,” you may be saying. “They’re linked to human rights abuses and sanctioned by Western governments. Many identity/biometric players are not sanctioned.”

But I’m not hearing loud celebrations from these other firms.

I’ve privately heard three separate stories, one of which I just heard on Monday, involving major identity/biometric companies. All three stories involve firms that are not sanctioned. In all three cases the firms perform major business with Western governments. And all three stories involve contraction which would have been unthinkable a mere five years ago.

Not too long ago I compiled a list of four significant events that positively impacted the identity/biometric industry. That list included 9/11, the Boston Marathon bombings, Apple’s Touch ID, and COVID.

I’m starting to wonder whether that last event was, in the long term, a net positive or a net negative.

(Tumbleweed image public domain)

(Bredemarket Premium) The drawbacks of a FOCI-mitigated subsidiary

Those portions of the U.S. government that deal with critical infrastructure are naturally concerned about foreign encroachment into U.S. Government operations, even from “friendly” nations. Therefore, the U.S. Government takes steps to mitigate the effects of “Foreign Ownership, Control or Influence” (FOCI).

I’ve worked for two companies that needed to undertake FOCI mitigation, and I know of others that have also done this. And while FOCI mitigation offers benefits to the United States, there are also drawbacks of which everyone involved should be aware.

Subscribe to get access

Subscribe to Bredemarket Premium to access this premium content.

Subscriptions just $5 per month.
Access Bredemarket’s expertise without spending hundreds or thousands of dollars.

Four of my identity information sources that I have created over the years, including one that you can access in the next ten seconds

How many of us keep on doing the same thing, but just use different tools to do it?

For example, I am going to provide four examples of ways…I mean, for example, I am going to list four ways in which I have disseminated identity information to various internal and external audiences over the last fifteen years. Three of these methods had restricted access and some are no longer available, but the last one, Bredemarket Identity Firm Services, is publicly available to you TODAY.

You can get to this information source in ten seconds if you like. If you’re a TL;DR kind of person, click here.

For the rest of you, read on to see how I used COMPASS (most of you haven’t heard of COMPASS), SharePoint (you’ve heard of that), email (you’ve definitely heard of that), and LinkedIn (ditto) to share information.

Take One: Using Motorola Tools

For the first identity information source, let’s go back about fifteen years, when I was a product manager at Motorola (before The Bifurcation). Motorola had its own intranet, called COMPASS, which all of us Motorolans would use to store information except when we didn’t.

Using this intranet, I created a page entitled “Biometric Industry Information,” in which I pasted links and short descriptions of publicly-available news items. I’m not sure how useful this information source was to others, but I referred to it frequently.

Eventually Motorola sold our business unit to Safran, and “Biometric Industry Information” was lost in the transition. For all I know it may be available on some Motorola Solutions intranet page somewhere, though I doubt it.

Take Two: An Industry-Standard Tool and an Expanded Focus

The second identity information source was created a few years later, when I was an employee of MorphoTrak. Two things had changed since the Motorola days:

MorphoTrak’s parent company Safran didn’t use the Motorola intranet solution. Instead, it used an industry-standard intranet solution, SharePoint. This was tweaked at each of the individual Safran companies and regions, but it was pretty much a standard solution.
The second change was in the breadth of my interests, as I realized that biometrics was only part of an identity solution. Yes, an identity solution could use biometrics, but it could also used the driver’s licenses that MorphoTrak was slated to produce (but didn’t), and other security methods besides.

So when I recreated my Motorola information source, the new one at MorphoTrak was a Microsoft SharePoint list entitled “Identity Industry Information.”

Again, I’m not sure whether others benefited from this, but I certainly did.

Take Three: Taking Over an Email List

The third iteration of my information source wasn’t created by me, but was created about a decade ago at a company known as L-1 Identity Solutions. For those who know the company, L-1 was a conglomeration of multiple small acquisitions that provided multiple biometric solutions, secure document solutions, and other products and services. Someone back then decided that a daily newsletter covering all of L-1’s markets would be beneficial to the company. This newsletter began, and continued after Safran acquired L-1 Identity Solutions and renamed it MorphoTrust.

MorphoTrust and my company MorphoTrak remained separate entities (for security reasons) until Oberthur acquired some of Safran’s businesses and formed IDEMIA. In North America, this resulted in the de facto acquisition of MorphoTrak by MorphoTrust, and some significant shifting in organizational charts and responsibilities.

As a result of these changes, I ended up taking over the daily newsletter, tweaking its coverage to better meet the needs of today, and (in pursuit of a personal annual goal) expanding its readership. (This email was NOT automatically sent to everyone in the company; you had to opt in.)

Now some may believe that email is dead and that everyone should be on Volley or Clubhouse, but email does serve a valid purpose. As a push technology, emails are provided to you every day.

OK, every five seconds.

But modern email systems (including those from Microsoft and Google) provide helpful tools to help you manage your email. This allowed people to prioritize their reading of my daily newsletter, or perhaps de-prioritize it.

Two years later IDEMIA underwent another organizational change, and I was no longer responsible for the daily newsletter. Last I heard, the daily newsletter still continues.

Take Four: Market Me, Benefit You

Eventually I left IDEMIA and started Bredemarket, and the identity industry became one of the industries that I targeted for providing Bredemarket’s services. To build myself as an identity industry authority, and to provide benefits to identity industry firms, I needed to market specifically to that segment. While my online marketing outlets were primarily focused on my website, I was also marketing via LinkedIn and Facebook. My LinkedIn marketing was primarily though the Bredemarket LinkedIn company page.

In late November, I decided to create a LinkedIn Showcase page entitled Bredemarket Identity Firm Services. While the page was initially created for other reasons, I eventually settled into a routine of sharing identity industry information via the page.

Like I’ve done one thousand times before.

I’m trying to add new content to Bredemarket Identity Firm Services on a daily basis. It’s primarily content from other sources, but sometimes my own content (such as this post) will find its way in there also. And, as in the example above, I’ll occasionally include editorial comments on others’ posts.

So if you’re on LinkedIn and would find such content useful to you, go to the showcase page and click the “Follow” button.

P.S. I have a technology showcase page also.