Digital technology vendor SCM Microsystems is to acquire Towitoko, a supplier of smart card-based security solutions for home banking and private PC access in Germany, for $5 million in cash.
The acquisition is expected to result in additional revenues of approximately $5 million and operating income of $500,000 in the current fiscal year for SCM. The vendor also says the acquisition will strengthen its PC security business and increase market penetration in Germany.
Towitoko supplies smart card readers and smart card-based solution packages to the German market. Its customers include Deutsche Bank and Dresdner Bank, who use its smart card readers to deploy home banking applications to their account holders. In addition, Towitoko provides a range of proprietary software-based applications that allow home PC users to implement their own smart card-based security or data management systems.
Robert Schneider, chief executive officer of SCM Microsystems, says: "Towitoko's strong position as a supplier to the German home banking industry boosts our competitive position in this emerging market, at a time when financial institutions worldwide are increasingly adopting smart card-based programs to increase security and differentiate themselves with customers."
The acquisition is scheduled to be completed during the second quarter of 2002.