August 04, 2006 03:13 ET
ASSA ABLOY HID's acquisition of Fargo Electronics Inc has now been completed
STOCKHOLM, SWEDEN -- (MARKET WIRE) -- August 4, 2006 --
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
Copyright © Hugin ASA 2006. All rights reserved.