Authentix buys Nanotech Security assets from Meta Materials

Authentix has finalised the acquisition of Canadian group Meta Materials authentication operations, centred around the Nanotech Security Corp (NSC) business, for around $10m.

The takeover price represents a fire-sale of the assets, given that Meta Materials – which has run into considerable difficulties of late – paid around $73m for NSC and its nano-optic-based security features just three years ago. Around $3 million of the purchase price is being held in escrow "to satisfy certain post-closing matters," according to a filing with the Securities & Excgange Commission (SEC).

In a statement, Authentix's president and chief executive Kevin McKenna (pictured top) said the acquisition expands its presence in the banknote, currency, and brand protection sectors and "compliments and leverages" its position in other technologies like high-security printing to support "ongoing growth in our authentication group covering central banks, governments, and commercial brand owners."

Staff levels at NSC had been reduced to just five as the deal closed, with Authentic offering them employment opportunities and committing to continue operations at two sites operated by the company in Burnaby, British Colombia, and Thurso, Quebec.

NSC is a specialist in nanostructured functional films, including the Lumachrome security feature which has been used in upwards of 30 banknote denominations worldwide, and LiveOptik PROTECT security foil for the brand protection market.

Meta Materials meanwhile seems to be in steep decline, with the SEC filing also revealing that a subsidiary of the company – Metamaterial Inc – had filed for bankruptcy. The company's management and board are reported to be exploring strategic options, including other asset sales and financing efforts, to try to steady the ship, and recently implemented a major staff reduction drive.

The deal with Authentix meanwhile is the latest in a series of acquisitions by the US authentication specialist, following the takeovers of Netherlands security printing company Royal Joh. Enschedé last year, Singapore online brand and content rights protection firm SIPI in 2021, covert marking specialist Traceless in 2020, and UK security printer SPS Ltd in 2019.