SCM Microsystems, Inc. and Hirsch Electronics Corp. announced they have entered into a definitive agreement to merge. The combination of SCM and Hirsch is expected to result in a security products leader at a time of escalating market demand for converged security solutions leveraging smart cards and smart chip-enabled devices.
Pursuant to the proposed merger, the security holders of Hirsch will receive a combination of cash, SCM common stock and warrants to purchase shares of SCM common stock, with total consideration based on the price of SCM common stock at the time of closing.
The combination of SCM, a global provider of smart card-based logical access readers, and Hirsch, a player in the physical security industry and a pioneer in the electronic access control market, will provide customers with a more comprehensive and powerful set of solutions for linking physical and logical access control across the enterprise. Together, the two companies will be better positioned to meet a broader set of customer needs, strengthen their market presence globally, leverage existing distribution channels and achieve an operational scale to accelerate growth into new markets.
The synergies in the company product lines and the opportunities for highly integrated security products are tremendous, stated Larry Midland, president of Hirsch Electronics. There is virtually no overlap in the companies current lines, yet the products and technologies are complementary. And, in both our organizations DNA, we have a commitment to the customer and a clear focus on innovation, reliability, and company integrity. I believe this is an ideal match.
Following the merger, the combined company will be called SCM Microsystems and its common stock will continue to trade under SCM Microsystems name on both the U.S. NASDAQ and the Frankfurt Prime Standard exchanges. SCM and Hirsch products will continue to be marketed under their respective brand names.