SMARTRAC SELLS SECURE ID & TRANSACTIONS BUSINESS TO LINXENS
time: 2016-11-17 17:31
RFID and Internet of Things solutions provider Smartrac has announced an agreement to sell its Secure ID & Transactions (SIT) business division to the Linxens Group, a manufacturer of smart-card connectors, inlays and LED light sources. Linxen's connector products are used in smart cards to enable the communications and transactions of financial and public-sector applications used by consumers, according to Smartrac, including banking cards, SIMs for mobile telephony, ID and health cards.
Smartrac's SIT business division consists primarily of the company's Pre-Laminates and White Card product lines, which are sold mainly for use in contactless payments, enterprise access, public transportation and government/eID applications. The sale does not include Smartrac's RFID inlays and tags, hard tags and solutions businesses, according to the company. Smartrac will retain its production facilities in Fletcher, N.C., Guangzhou, China, and Kulim, Malaysia.
According to the terms of the agreement, Linxens will take over all employees and assets assigned to Smartrac's SIT business division. Linxens will be allowed to use the Smartrac brand for the SIT business for a period of up to 24 months after the sale is completed, and will meet all of Smartrac's SIT contractual obligations to employees, customers and suppliers.
"What we are announcing today sets the future direction for everyone at Smartrac. As a part of the Linxens Group, our highly successful and profitable Secure ID & Transactions business will face a bright future as a leader in payment, access control and identification technologies for maximum security and customer convenience," said Christian Uhl, the CEO and chairman of the management board at Smartrac, in a prepared statement. "At the same time, Smartrac's core business will be able to focus and accelerate its already successful transition into a leading provider of ready-made and customized RFID products and IoT-based solutions that enable businesses to identify, authenticate, track and complement product offerings."
The acquisition is subject to regulatory approval and other customary closing conditions, and is expected to close by the end of 2016.