Phoenix Check Cashing Inc., a company started by executives from the struggling biometric payments provider Solidus Networks Inc., has acquired Solidus' check-cashing business, BioPay Paycheck Secure.
Phoenix, of Herndon, Va., announced the purchase Thursday. Several people from the BioPay unit's management team and their investors created Phoenix specifically to take over the Solidus check-cashing unit.
Phoenix's backers include WWC Capital Group of Reston, Va., and Woodbrook Capital of Baltimore.
Solidus, a San Francisco company that does business under the Pay By Touch brand, bought a rival biometrics payments company, BioPay LLC, in 2006.
The paycheck-cashing service is used by banks to automate check cashing services for noncustomers.
Last year Solidus entered bankruptcy proceedings after falling behind on many of its bills, including rent and salaries.
It said in January that it would retain its core biometric payments business but would consider selling off some other assets, including the BioPay Paycheck Secure unit.
Jon Dorsey, BioPay Paycheck Secure's chief executive, said in a Phoenix press release: "We are very excited about re-energizing this business. We look forward to leveraging the product's legacy of as the market leader in fingerprint authentication of check-cashing transactions. This is a great product that now has the resources to deliver on its full potential."
