HID Global to Acquire Fargo Electronics

May 23, 2006
Card manufacturing, card reading, card printing and card issuance wrap up together with acquisition

Assa Abloy's HID Global Corporation, best known for its industry-embraced iClass smart cards, as well as a variety of reader technology and access control offerings, is getting its hands into the world of card issuance.

The company announced today that it would be acquiring Fargo Electronics, a company best known for their secure-printed badges and card printing solutions.

The acquisition was unanimously approved by the board of Fargo Electronics and represents an all-cash purchase, at $25.50 per Fargo Electronics share. The merger is expected to close at the end of the third quarter.

HID Global's president and CEO Denis HĂ©bert said the acquisition strengthens HID's position in the market.

“We believe that we are now positioned as a leader in the rapidly growing market for secure issuance of corporate and national ID credentials," said HĂ©bert in a statement announcing the merger of the companies. "The combined organizations create the foundation to assure that materials are secure, that the process of issuing a credential is not subject to fraud, and that the resulting product is highly tamper-proof.”

As of current, both companies' boards have approved the merger, and Fargo will likely go to its stockholders to bless the agreement with a vote on the acquisition, though the date of that vote has yet to be announced.

On the Web:
Fargo Electronics: http://www.fargo.com/
HID Global: http://www.hidcorp.com/