Scottsdale 8/17/2013 3:00:00 AM
SuperCom (SPCBF) Signs Definitive Agreement to Acquire OTI’s SmartID Division
QualityStocks would like to highlight SuperCom (OTCBB: SPCBF), a global leading provider of traditional and digital Identity solutions, providing advanced safety, identification and security products and solutions, to governments, private and public organizations around the world. SuperCom has been inspiring governments and national agencies to design and Issue secured Multi-ID documents and robust digital identity solutions to its citizen and visitors, using SuperCom e-Government platforms and innovative solutions for traditional and biometrics enrollment, personalization, issuance, and border control services.
In the company’s news,
SuperCom has signed a definitive agreement with On Track Innovations Ltd. (OTI) to acquire that company’s SmartID division. This acquisition will include employees, all contracts software and other related technologies, patents, and IP assets.
Once a due diligence process has been successfully concluded, SuperCom will pay $10 million with an earn-out mechanism of up to $12.5 million more (subject to a variety of performance criteria and milestones).
The acquired SmartID division boasts a strong global presence and a wide range of competitive and well-known technology and EID solutions. The acquired division’s average annual revenue was around $20 million in 2011 and 2012. SuperCom’s annual revenue will be tripled on a pro-forma basis through the merger with the acquired division, and the merger is anticipated to be highly accretive to SuperCom’s financial results.
The acquisition is reflective of SuperCom’s ongoing long-term strategic plan to become a leading solutions provider to the worldwide electronic ID market. The acquisition additionally boosts SuperCom’s contract base and pipeline as well as increasing the company’s potential revenue growth. In addition to greatly expanding the breadth of SuperCom’s worldwide EID capabilities, the acquired SmartID division will provide the company with exceptional market and technology experts and the finest ID software platforms and technologies. Through the acquisition, SuperCom will be able to leverage OTI’s robust and vast array of field-proven technologies and solutions in the rapidly expanding EID market.
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Forward-Looking Statement:
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