SANTA ANA, Calif. — Physical access control provider Hirsch Electronics Corp. and SCM Microsystems Inc., a German manufacturer of smart card-based logical access readers, have entered into a definitive merger agreement.
The combined company is expected to compete in the escalating market demand for converged security solutions leveraging smart cards and smart chip-enabled devices.
Hirsch stockholders will receive a combination of cash, SCM common stock and warrants to purchase shares of SCM common stock, with total consideration based on the price of SCM common stock at the time of closing. Hirsch Electronics President Larry Midland is expected to join SCM’s board of directors and become an executive officer for the combined company that, following the merger, will be called SCM Microsystems. SCM and Hirsch products will continue to be marketed under their respective brand names.
The transaction is expected to close in the first half of 2009.