VeriChip Sells Business Unit
VeriChip, a company that manufactures radio frequency identification (RFID) systems, completed a definitive merger agreement with The Stanley Works for the sale of Xmark. Xmark is a wholly-owned subsidiary of VeriChip based in Canadian. The purchase price is $45 million to be paid in cash.
Xmark manufactures electronic monitors that are used in both security and healthcare industries. The deal will allow VeriChip to retire all of its outstanding debt with the cash infusion. VeriChip expects net proceeds after paying debt, contractual commitments, and amounting other transaction-related costs to be $21.4 million.
Stanley Works noted that the transaction will support a larger array of services and products to support the company’s security business.
May 27, 2008 Related topics: Mergers & Acquisitions