The ASSA ABLOY Group company HID Corporation has signed an agreement to acquire Motorola's worldwide assets of the radio-frequency identification (RFID) access control business, Indala.

 

Indala is a highly regarded player in the access control industry, with headquarters in San Jose, California. The company was founded in 1985 and acquired by Motorola in 1993. The product offering is to a large extent the same as HID's, consisting of RFID based cards and readers for the access control industry and other applications. The installed base of Indala products is substantial with 60 million cards and 1 million readers installed. The RFID access control business is expected to turn over USD 25 M this year with low profitability.

 

The acquisition creates good scope for synergies all areas. The goodwill created by the acquisition is minimal and will be tax deductible. The acquisition will be EPS positive from the start.

 

ASSA ABLOY expects the acquisition to be finalized before the end of 2001 pending the satisfactory completion of customary conditions for closing.

 

 

 

                                                   

 

For further information, please contact

Göran Jansson, CFO, tel. +46-8-506 485 72 or +46-70-698 85 72

 

ASSA ABLOY AB (publ)

P.O. Box 70340, S-107 23 Stockholm

Tel: +46 8 506 485 00, Fax: +46 8 506 485 85

Visiting address: Klarabergsviadukten 90