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Components | December 13, 2011

Smartrac becomes majority owner of Neology Inc.

Smartrac N.V. signed an agreement regarding the acquisition of Neology, Inc..
Under the terms of the agreement, Smartrac will acquire Neology for US $ 30.0 million, on a cash and debt free basis. In addition, the parties have agreed on an earn-out component of up to US $ 9.0 million based on results of operations for the years 2011 and 2012.

Tenedora de Empresas S.A. de C.V. (Tenedora), the current majority shareholder in Neology, Inc., will retain a 15 percent stake in Neology and has agreed to re-invest any earn-out payments it may receive into the combined company. The acquisition is subject to customary closing conditions and is expected to close by the end of the year.

Neology, Inc., a Delaware Corporation, operates in the field of secure customized high-value RFID transponders and solutions. The company is headquartered in San Diego, California, with offices in Mexico City and employs more than 150 people.

“With this transaction, we will significantly expand our reach in the Americas,” said Dr. Christian Fischer, CEO of Smartrac. “Combining our strong capabilities with the most successful technology platform for electronic vehicle registration and electronic toll collection will create a wealth of market-leading solutions for Neology and Smartrac customers.”

Smartrac maintains production facilities in Chanhassen, Minnesota, USA, and Manaus, Brazil. Both Smartrac and Neology will benefit from synergies across product portfolios and markets. Under the new ownership, Neology and the totality of its 150 employees will continue its business activities in San Diego and Mexico City.

“The transaction opens excellent new possibilities for both companies. Combining our strong intellectual property and UHF competency with Smartrac’s market leading position in the RFID industry will drive a new wave of innovation for customers around the world,” said Francisco Martínez De Velasco, CEO of Neology Inc.
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November 15 2018 5:25 pm V11.9.0-2