News
Identive Group Completes Acquisition of RockWest Technology Group
SCM Microsystems, Inc. d/b/a Identive Group (Nasdaq: INVE; Frankfurt Stock Exchange: INV), a provider of products, services and solutions for the security, identification and RFID industries, today announced that it has completed the acquisition of RockWest Technology Group, a privately held provider of identification and security solutions. The transaction closed on April 14, 2010, and RockWest is now a wholly-owned subsidiary of Identive.
"RockWest's focus on ID issuance and personalization and ID system integration complements the Identive Group Identity Management Solutions & Services business and provides an ideal base from which to launch and build our Multicard brand in the U.S.," said Ayman S. Ashour, Chairman and CEO of Identive Group. "RockWest's regional strength, experienced management team and unique portfolio of ID and security offerings will enhance our ability to address the growing demand for identity management solutions. We expect that RockWest will add profitable revenues in the range of USD 5 to 6 million for the portion of the year that they will be part of Identive. The company has a healthy balance sheet with a net cash position of over USD 500,000."
George Levy, co-founder and CEO of RockWest Technology Group commented, "The RockWest team is very excited to be joining the Identive Group. My visits to several Identive business locations in Europe and the U.S. have reinforced my view that the two companies are a close and complementary fit in terms of technology, market coverage and their focus on growth and profitability. We couldn't be any more pleased to be joining such a dynamic and thought leading group."
RockWest provides ID management solutions and services to the education, government, corporate, casino and healthcare markets in the southwest region of the U.S. The company was founded in 1999 and is based in Denver, Colorado, with branch offices in California, Arizona and New Mexico, employing 43 people.
Identive paid an aggregate of 2.6 million shares of its common stock for RockWest, which are subject to a 24-month lock-up arrangement. The acquisition is expected to be accretive to Identive's earnings in fiscal 2010.
SCM Microsystems, Inc.