SMARTRAC acquires OTI's and MCT's inlay manufacturing assets
Both parties signed a long term supply agreement
Amsterdam, Niederlande (pts005/06.11.2009/06:39) The TecDAX listed company SMARTRAC N.V. today announced, that the company has signed binding agreements with NASDAQ listed On Track Innovations Ltd, (OTI) by which SMARTRAC acquires the assets of OTI's subsidiary Millennium Card's Technology Ltd. (MCT) and the machinery and inlay production IP from OTI for EUR8.5 million (approx. $12.5 million) in an asset deal. The Parties signed a supply agreement that will fully secure OTI's delivery of products and projects and SMARTRAC becomes OTI's exclusive supplier for wire-embedded and Dual Interface Inlays.
In addition, both parties will mutually accept and respect each others patents especially in the field of Wire-Embedding and Dual Interface technology. As part of the agreements, all patent litigations and in particular all patent infringement legal proceedings between SMARTRAC and OTI have been ceased.
SMARTRAC will strengthen its leadership position in the global RFID inlay market by offering an even wider range of products by adding OTI's production and machinery to its manufacturing capacity.
SMARTRAC intends to finance the transaction by the existing syndicated credit facility or a capital increase by issuing new shares within the authorized capital stock.
About SMARTRAC N.V.
SMARTRAC is a leading manufacturer and supplier of RFID (Radio Frequency Identification) transponders for a broad bandwidth of applications in all current frequency standards. The company produces ready-made as well as customized transponders for public transport, access control, automotive, animal identification, industry and logistics.
SMARTRAC is the global leader in high-quality RFID inlays for passports with integrated, contactless chips (ePassports) and contactless credit cards (ePayment). SMARTRAC was founded in 2000 and since going public in July 2006 has been trading as a stock corporation under Dutch law with its registered headquarters in Amsterdam. The company currently employs some 2,600 employees and maintains a global research and development, production and sales network.
Forward-looking statements
To the extent that this press release contains forward-looking statements, such statements are based on assumptions, planning and forecasts at the time of publication of this press release. Forward-looking statements always involve uncertainties. Business and economic risks and developments, the conduct of competitors, political decisions and other factors may cause the actual results to be materially different from the assumptions, planning and forecasts at the time of publication of this press release. Therefore, SMARTRAC N.V. does not assume any responsibility relating to forward-looking statements contained in this press release. Furthermore, SMARTRAC N.V. does not assume any obligation to update the forward-looking statements contained in this press release.
Andreas Schwarzwälder Investor Relations Tel: +31 20 30 50 156 Email: andreas.schwarzwaelder@smartrac-group.com
Tanja Möhler Corporate Communications Tel: +31 20 30 50 157 Email: tanja.moehler@smartrac-group.com
Nachricht übertragen durch: DGAP Corporate-News
(end)| Aussender: | SMARTRAC N.V. |
| Ansprechpartner: | Andreas Schwarzwälder |
| Tel.: | +31 20 30 50 156 |
| E-Mail: | andreas.schwarzwaelder@smartrac-group.com |
| Website: | www.smartrac-group.com |
