HID Global Corp., an ASSA ABLOY company, has agreed to acquire Fargo Electronics Inc., a provider of secure technologies for identity card issuance systems. The agreement involves an all-cash consideration of $25.50 per share.
According to HID, the transaction is expected to take place near the end of the third quarter and is subject to stockholder and regulatory approval. The offer is not subject to any financing contingency.
HID and Fargo have a long history of cooperation and the decision to merge the two firms involves a joint desire to pursue business opportunities that involve secure identification technologies.
“We believe that we are now positioned as a leader in the rapidly growing market for secure issuance of corporate and national ID credentials. 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,” says Denis Hébert, president and CEO of HID Global.
“We’re looking forward to becoming part of HID,” says Gary Holland, president, CEO and chairman of the board of Fargo Electronics. “This is a positive step for both ASSA ABLOY and for Fargo stockholders, and it is exciting for Fargo’s customers and employees as well.
The board of directors for HID and Fargo have tentatively approved the transaction. Fargo’s shareholders will vote on the merger at a special meeting to be announced at a later date.
