4 Aug 2006
ASSA ABLOY HID's acquisition of Fargo Electronics Inc has now been completed
The acquisition of Fargo
Electronics Inc ("Fargo") has been approved by the shareholders of
Fargo and received regulatory approval. The acquisition has now
been completed.
The acquisition is a result of a long-standing
relationship between two successful security solutions companies,
HID and Fargo, and their decision to jointly pursue opportunities
in the secure identification field.
Founded in 1974, Fargo is a global leader in the
development of secure technologies for identity card issuance
systems, including secure card printer/encoders, materials and
software. The company has sold more than 120,000 systems in the
U.S. and over 80 other countries worldwide. Fargo was recognized by
FORTUNE Small Business Magazine as one of America's Fastest-Growing
Companies in 2004.
Fargo is expected to reach annual sales of more
than USD 90 M in 2006 with a continued strong EBIT margin. The
company is headquartered in Minneapolis, Minnesota where it has
both its corporate headquarters and operating facility. The company
has approximately 220 employees.
The acquisition price for a cash and debt free
company amounts to USD 300 M. Acquisition related intangibles, net
of deferred tax, is expected to amount to USD 270 M. The
acquisition is expected to be slightly dilutive to EPS in 2006 and
accretive to EPS in 2007.
The acquisition is financed through the existing
credit facility.
Further information can be
obtained from
Martin Hamner, Director of Investor Relations
and Group Controller, Tel: + 46 8 506 485 79
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