Bluehill ID AG has announced that it has successfully completed the acquisitions of Multicard AG and TagStar Systems GmbH.
The acquisitions were completed following the approval of the General Assembly of Bluehill ID AG on July 25, 2008 and of the Board of Directors based on a certified capital increase report from the company auditors. The total consideration of the transaction consisted of the issuance of 4'400'000 new shares, as well as a cash payment of CHF 2'276'459 and includes the assignment of loans of CHF 1'490'092 from the sellers to Bluehill. In addition, the transaction includes agreements for earn out payments based on the achievement of sales and profit targets. Bluehill ID expects this transaction to be accretive to earnings in 2008.
Multicard AG (www.multicard.com) is an identification technology company focusing on the personalization, programming and issuance of ID cards based in Wallisellen, Switzerland. Earlier this year Multicard completed the acquisition of DCS Europe, expanding its presence into Germany and expanding its product capabilities to cover RFID based and contact smartcard solutions for secure identification programs
TagStar (www.tagstar-systems.de) was founded in 2003 and has seen considerable growth in sales and profits over the last 3 years. The company is completely focused on the manufacturing of RFID inlays for libraries, transport, pharmaceutical, industrial and other high value tracking applications. TagStar had completed the purchase of Exypnotech GmbH in the end of 2007 and is based near Munich in Sauerlach, Germany.
Commenting on the closing of this transaction Ayman Ashour, CEO of Bluehill ID stated: "This transaction is an important step in the development of Bluehill ID, we have been working with the Multicard and TagStar teams very closely for few months now and we look forward to continuing to work with both companies to accelerate their growth. The TagStar team adds tremendous technology depth to our group in RFID antenna design and in the manufacture of transponders. TagStar has continued to grow because of their remarkable design and their manufacturing skills but also because of their respect for their customers and because of operating a clear and disciplined business model." Ashour added: "On the other hand, Multicard's unique combination of in-depth understanding of smartcard applications in the government and corporate markets as well as their ID card personalization and programming skills makes us very optimistic about future prospects."
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