Under the terms of the deal, the Oakbrook Terrace, Illinois-based company is using its own cash and shares to acquire all the stock of the s-Hertogenbosch, the Netherlands-based provider of smartcard readers and security-based internet appliances. The deal is valued at 5m euros ($6.3m), and breaks down into 3.7m euros ($4.7m) in cash, and 1.2m euros ($1.6m) in Vasco’s common stock.
Speaking to ComputerWire, corporate communications director Jochem Binst confirmed the acquisition was part of the company’s previous announced strategy of make or buy. When asked if there where any further deals in the pipeline, he would only say the make or buy strategy remains in place.
Binst said: AOS-Hagenuk is a debt free company and Vasco’s principle reason for the acquisition was its research and development expertise. He confirmed that all 19 employees would be retained, and that Vasco intends to centralize its Vasco Smartcard R&D personnel in the AOS-Hagenuk offices in Holland.
AOS-Hagenuk has an installed base of 2.5 million smartcard based authentication devices, and its generated modest profits in 2003 and 2004. In 2004, its sales were up 85% to 4.4m euros ($5.6m).
Vasco itself has 95 to 100 staff, and is a profitable organization that is also debt free. The company is set to release its Q4 and full year 2004 results on February 15.
