Senstar-Stellar Inc. and Perimeter Products Inc. will be merged into one company to be called Magal-Senstar Inc.

"This merger will create a larger entity and a significant market participant, which we believe will present a more competitive force in the U.S. defense and homeland security markets," commented Jacob Even-Ezra, Magal chairman. "It also will reduce our overhead expenses, leading to an increase in the efficiency of our U.S. operations."

Magal develops, manufactures and markets computerized security systems that automatically detect, locate and identify the nature of unauthorized intrusions.