Creating a Brand New Identity

America's craving for security in a post-September 11 world has made Wall Street favorites of once-obscure companies that produce high-tech identification systems. Among them are Visionics of Jersey City, which produces fingerprinting and facial-recognition software, and Identix of Los Gatos, California,

Now these East Coast-West Coast competitors are joining forces in a deal in which Identix will acquire Visionics for $269 million in stock. Visionics' CEO Joseph Atick will be CEO of the merged company while Identix CEO Robert McCashin will be chairman. "Our objective as a combined entity is accelerated growth and sustained profitability," Atick said.

Biometric security companies such as Visionics and Identix use unique physical attributes to identify individuals. Visionics gained celebrity in the stock market after September 11 for its FaceIt face recognition technology and other identification devices.

Shares of Visionics, which reached a 52-week high of $21 in December, traded last seek in the $11-to-$12 range. Identix, which reached a high of $15.74 in December, traded last week in the $8-to-$9 range. Says McCashin: "This combination positions us to respond more fully to the need of multiple markets and industries for identification security applications and solutions."