Symbol Technologies, a wireless information services company, has reached an agreement to acquire Matrics, a designer and manufacturer of electronic product code (EPC)-compliant RFID systems, for $230 million.
“We believe that in order for RFID to be deployed successfully, it needs to be deployed as a system — a system that allows customers to capture, move and manage critical information to and from the point of business activity,” said William Nuti, Symbol president and chief executive officer.
“By incorporating the Matrics EPC-compliant RFID products into Symbol’s portfolio of mobile computing, advanced data capture and wireless technologies, Symbol can help customers in key market segments gain operational efficiencies,” added Nuti.
Symbol intends to finance the acquisition with short-term borrowings under a new credit facility and expects to refinance the borrowings in a capital markets equity or equity-linked transaction later this year, market conditions permitting. The acquisition, which is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act, is expected to close in the third quarter of 2004.
Separately, the United States District Court for the District of Delaware has today entered an order requiring Proxim Corp to pay Symbol approximately $23 million in damages, plus $3 million in interest, in a patent case.
In this case, which relates to wireless local area networking technology, the award of $23 million was based on a six percent royalty on products that were determined to have infringed Symbol wireless patents.