SATO (Singapore), a supplier of automatic identification and data collection (AIDC) technology, agreed to purchase Checkpoint Systems’ Bar Code Systems businesses. SATO will acquire Checkpoint’s BCS businesses, with operations in North America, Asia Pacific and Europe, including its hand-held labeling solutions (HLS) in the United States. The purchase price is expected to be approximately $40 million in cash, including $8.6 million in excess of net book value. The transaction is expected to be closed by January 30, 2006, subject to local and legal requirements.
The transaction will reportedly allow Checkpoint to focus on its core businesses, while enabling SATO to immediately increase its presence and customer base in the bar code market, especially for consumables and services, in line with SATO’s overseas business expansion strategy.
“ Checkpoint is pleased to enter into this agreement with SATO, a company with a solid presence in the Bar Code Systems business . “Our customers will benefit from SATO’s commitment to excellence in its product offerings and services and our BCS employees will now have the opportunity to work for a company solely focused on long-term growth in the Bar Code Systems business. This transaction gives us the opportunity to now totally focus our resources on our growth businesses and create increased value for our customers and shareholders,” said George Off, chairman and chief executive officer of Checkpoint.