Checkpoint Systems Inc., a manufacturer and marketer of identification, tracking, security and merchandising solutions for the retail industry and its supply chain, has entered into a definitive agreement to acquire OATSystems Inc., a provider of RFID-based application software and middleware. The all-cash transaction is expected to close within two weeks. Checkpoint expects the transaction to be dilutive to earnings per share through 2009 and accretive thereafter.
OATSystems' international client base consists of companies in the retail, consumer products, consumer electronics, manufacturing, life sciences, aerospace and defense industries.
Checkpoint and OATSystems offer complementary merchandise protection and inventory management applications that together should strengthen their combined presence in the retail market. For retail customers, OATSystems solutions help turn large quantities of data from RFID hardware into meaningful and actionable information. These solutions enable retailers to enhance operational efficiency by obtaining accurate perpetual inventory levels, ensuring on-shelf availability of merchandise that is integrated within the framework of existing loss prevention strategies and practices.
"The addition of OATSystems builds upon our previously announced strategy to help retailers and their suppliers migrate more easily with our Evolve Electronic Article Surveillance platform to Electronic Product Code RFID," said Rob van der Merwe, president and CEO of Checkpoint Systems. "As our industry moves to a common EPC standard, Checkpoint with the addition of OATSystems' capabilities will now be able to offer solutions that enable retailers and their supply chains to gain deeper inventory visibility -- further reducing shrink and increasing bottom-line profits by enhancing on-shelf merchandise availability for consumers."
Senior management of OATSystems, including Michael George, president and CEO of OATSystems, will continue to operate the business as a division of Checkpoint. The company will continue to use and develop the OATSystems brand and software platform to serve retail, consumer products and industrial customers.
