Checkpoint Systems recently announced to enter into a definitive agreement to leading RFID middleware provider, OATSystems. The transaction will be all in cash and expected to be closed within two weeks.
Checkpoint Systems is a leading ID security vendor to provide tracking, security and retail shrink management solutions. The company use RF technology, shrink managements and Check-Net labeling solutions to help retailers and their partners in the supply chains to reduce goods theft, increase inventory visibility and merchandise availability .
Based in Waltham, MA, OATSystems is the recognized leader in RFID-based application software and middleware. Its 100+ international customers includes several leading companies in the retail, consumer products, consumer electronics, manufacturing, life sciences, aerospace and defense industries. As a pioneer in developing RFID technology, OATSystems has been setting the standards in RFID for over half a decade and is responsible for industry firsts that include the largest scale and largest scope of deployments, as well as the most innovative approaches to providing enterprise-wide RFID solutions.
Checkpoint and OATSystems offer complementary merchandise protection and inventory management applications that together strengthen their combined presence in the retail market.
According to Rob van der Merwe, President and Chief Executive Officer, Checkpoint Systems, "with this acquisition, Checkpoint is once again redefining the scope of Shrink Management. The addition of OATSystems builds upon our previously announced strategy to help retailers and their suppliers migrate more easily with our Evolve Electronic Article Surveillance platform to Electronic Product Code RFID. As our industry moves to a common EPC standard, Checkpoint
with the addition of OATSystems' capabilities will now be able to offer solutions that enable retailers and their supply chains to gain deeper inventory visibility - further reducing shrink and increasing bottom-line profits by enhancing on-shelf merchandise availability for consumers."
For retail customers, OATSystems solutions help turn large quantities of data from RFID hardware into meaningful and actionable information. These solutions enable retailers to enhance operational efficiency by obtaining accurate perpetual inventory levels, ensuring onshelf availability of merchandise that is seamlessly integrated within the framework of existing loss prevention strategies and practices.
Checkpoint currently has more than one million RF devices installed in stores today and has secured more than 100 billion products.
Operated as a division of Checkpoint Systems and kept the same brand, OATSystems will be led by Michael George, the President and CEO of OATSystems and will be added to Checkpoint's 3,900 worldwide employee base.
"This is exciting news for OATSystems, its customers, partners and employees," said Mr. George. "We will continue our mission with the agility and technology innovation that has made OATSystems the leading provider of real-time RFID solutions. Combined with Checkpoint's global resources and leadership, we will be better positioned to help customers optimize their operations and achieve their goals."
"The addition of OATSystems provides Checkpoint with multiple avenues for expansion into higher growth markets as cross-selling opportunities are leveraged. We acted quickly and decisively on the acquisition of this industry recognized market leader," added Mr. van der Merwe. "The transaction is consistent with our plans for growing revenue both organically and through acquisitions. Importantly, in acquiring OATSystems we are welcoming one of the most respected management teams in the industry and a group of employees who are second to none. We look forward to working closely with the OATSystems team as we continue our efforts to grow our business and position Checkpoint for the future."
Checkpoint expects the transaction to be dilutive to earnings per share through 2009 and accretive thereafter.
Related Links:
