Digital security vendor Vasco has agreed to acquire Netherlands-based AOS-Hagenuk, a rival provider of smart card terminals and Internet security technology, for EUR5 million in cash and stock.
Under the deal, Vasco will pay EUR3.75 million in cash and EUR1.25 million in stock for privately-owned AOS-Hagenuk.
AOS-Hagenuk reported revenues of Euro4.4 million in 2004, 85% higher than 2003. The company posted modest operating profits in both 2004 and 2003 and is debt free. The firm's customers include Fortis and ABN Amro.
Vasco says the acquisition will strengthen its product line and speed up prodct development. It will centralise smart card related R&D activities in AOS- Hagenuk's offices in The Netherlands.
Mladen Filipan, CEO of AOS-Hagenuk, will join Vasco as VP of business development.
Although the companies are competitors, Vasco says there is hardly any overlap in their current product offerings.
Jan Valcke, president and COO Vasco, says the acquisition reinforces the firm's position in the smart card-enabled e-banking authentication market: "AOS-Hagenuk brings us a number of highly experienced smart card developers, which allows us to accelerate the development of Vasco's smart card reader offerings."