Edward Kaplan, Chairman and CEO of Zebra Technologies Corp., says he is disappointment over the termination of the company’s proposed acquisition of Fargo Electronics, which was announced today, but reaffirmed optimism for Zebra’s long-term growth and profitability. The company also announced that it would expense costs related to the acquisition in the first quarter of 2002.

Kaplan says, because of Zebra’s size and financial strength, Fargo was not considered a critical transaction for the company’s long-term health and growth potential.

“No doubt, we are disappointed that we did not complete the Fargo acquisition, which would have helped Zebra achieve its long-term growth objectives,” he says. “Our associates worked exceptionally hard to bring this transaction to a successful conclusion. At the same time, Fargo was only one of many avenues for growth for Zebra, in card personalization systems, bar code label and receipt printing, and related areas.”

Kaplan adds that Zebra is well positioned to pursue its business plans. “In card personalization systems, we intend to build on record sales in 2001 by continuing to introduce card printers incorporating new technologies that address a rapidly expanding array of high-growth applications in security, access control and personal identification.”

For the first quarter of 2002, the company will expense approximately $3,300,000 of capitalized acquisition costs and other accrued acquisition expenses that would have been capitalized if the company completed the Fargo acquisition. The company expects to report 2002 first quarter financial results on April 19.

If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our FREE digital newsletters!

Related Content