SMARTRAC N.V. announced that the company signed a contract with Deutsche Effecten- und Wechsel-Beteiligungsgesellschaft AG, Jena, Germany, regarding the acquisition of KSW Microtec AG by SMARTRAC N.V. at an amount of EUR 24 million enterprise value. The acquisition is subject to standard closing conditions.

The acquisition of KSW Microtec AG (KSW) will add KSW’s proficient team and renowned technology to SMARTRAC’s strong capability and global network of research and development, production, and sales locations on four continents.

KSW and SMARTRAC have very similar positions in the global RFID value chain. Thus, the acquisition will not create any channel conflicts. The long-term expertise of KSW in the high frequency (HF) and ultra-high frequency (UHF) RFID inlay production and proprietary know-how of KSW are expected to contribute to strengthening SMARTRAC’s technology base. Synergies are also expected to result from joint research and development activities. 

“We are very pleased to welcome KSW Microtec AG in our group of companies. Thomas Hitzer and his team have a very good reputation in the RFID industry regarding service orientation and product quality,” said Dr. Christian Fischer, CEO of SMARTRAC. “KSW’s product portfolio and technology range ideally complement our strong intellectual property. We are very confident that the acquisition will create value for the employees, global customer base and stakeholders of our companies.”

The acquisition further extends SMARTRAC’s market leading position in the RFID industry in particular in the access control, e-payment, e-Ticketing, and asset management application fields as well as for high-security products for government identification documents.

“The combination of our strong product portfolio and manufacturing concept with SMARTRAC’s widely respected and proven capabilities will create a comprehensive technology platform for our customers," said Thomas Hitzer, CEO of KSW Microtec AG. “Together we will lead the industry in providing smart and secure RFID transponders to meet any deployment preference and highest quality requirements.”

KSW Microtec AG is headquartered in Dresden, Germany, yet its customer list includes international players in Europe and North America. KSW manufactures RFID inlays, prelaminates, and components based on etched and printed antennas deploying advanced wafer processing, assembly, laminating, and interconnecting technologies. 

The acquisition of KSW enlarges SMARTRAC’s presence in Germany to three locations, including the Group’s Corporate Service Center in Stuttgart and the manufacturing facility in Reichshof-Wehnrath. KSW and the totality of its 72 employees will continue their business activity in Dresden, Germany. Under the new ownership, KSW’s operations will be integrated into SMARTRAC’s business unit organization and global corporate structure. The location in Dresden shall be fostered and shall serve as a European competence center for the Business Unit eID and the competence center for the development of high-security products for government identification documents.