ASSA ABLOYâ€™s HID Global Corp., Irvine, Calif., announced that it has entered into a definitive agreement to acquire Fargo Electronics Inc. for an all cash consideration. The transaction is expected to close at the end of the third quarter, subject to Fargo stockholder and regulatory approvals.
The acquisition is a result of a long-standing relationship between the two security solutions companies and their decision to jointly pursue opportunities in the secure identification field. â€œWe 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 guarantee 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,â€ said Denis HÃ©bert, HID president and CEO. Controlled access to materials, intelligent hardware that notifies authorities of misuse, and other enhanced process security features will set a new standard for performance in the industry.
Fargo Electronics Inc. is a provider in the development of secure technologies for identity card issuance systems, including secure card printer/encoders, materials and software. Fargo was recognized by FORTUNE Small Business Magazine as one of America's Fastest-Growing Companies in 2004. HID is part of the Global Technologies Division of ASSA ABLOY Group, based in Stockholm, Sweden.
HID is a supplier of contactless access control cards and readers, and other security products for corporations and governments globally. HID products are sold through a global network of OEM, distribution, and installer channels, supported by sales, service, and distribution centers in North America, Latin America, Europe, Hong Kong, China and India.
â€œWe value the opportunity to partner with the organization that has created a position of innovation and leadership in card issuance and personalization,â€ said Joe Grillo, president and CEO of ASSA ABLOYâ€™s Global Technologies Division. â€œThis acquisition complements our existing channel and product offerings, while broadening our capabilities in the rapidly growing secure card issuance category,â€ added HÃ©bert.
â€œWeâ€™re looking forward to becoming part of HID,â€ said Gary Holland, Fargo Electronics Inc.â€™s president, CEO and Chairman of the Board. â€œThis is positive step for both ASSA ABLOY and for Fargo stockholders, and itâ€™s exciting for Fargoâ€™s customers and employees as well. HID is well known in the electronic access control industry and is recognized as the trusted brand. With HIDâ€™s extensive resources and commitment in the electronic access control business, it will enable us to take our products and technologies to the next level.â€