Toronto-based Sirit Inc. has invested more than $5 million to dramatically expand its portfolio of radio frequency identification (RFID) technology with the acquisition of two competitors, TradeWind Technologies LLC, a specialist in high-frequency 13.56 MHz readers, and SAMSys Technologies Inc. Although best known for its ultra-high-frequency (UHF) readers that help customers meet supply chain-related RFID tagging mandates, SAMSys also offers low- and high-frequency readers, antennas and cables, and packaged systems that help customers quickly implement RFID.
Sirit will now turn its attention to integrating the two acquisitions to give customers a seamless transition. Sirit also plans to market the reader platform SAMSys was preparing to launch. The new open-architecture platform combines hardware, firmware, and software in the reader itself to improve performance and simplify implementation. A modular design makes it possible to mix and match features without re-engineering.
The new platform complements Sirit's new Plug-n-Play line of RFID readers with integrated antennas that RFID-enable devices using a standard SDIO or USB interface. The Plug-n-Play line supports a wide range of 13.56 MHz transponders, tags, and smart labels as well as various operating systems, and targets closed-loop applications such as inventory management, retail, and high-value product authentication, asset management, and contactless/cashless payments.
A broader product line with more form factors is just one benefit of the acquisitions. Sirit also gains highly skilled engineering teams, considerable intellectual property, a broader geographical reach, and new customers.
"We are excited about the opportunity to grow our market share and strengthen Sirit's presence in the global RFID market," says Norbert Dawalibi, president and CEO of Sirit.
The TradeWind deal is valued at $1.5 million, including $600,000 in cash and three million common shares. Sirit spent $4 million for SAMSys, which was purchased through a court-appointed receivership process. Despite rising revenue in recent years, SAMSys had struggled to make a profit and had experienced a series of losses. Cash flow problems escalated earlier this year and forced the sale after Fund 321 Limited Partnership/Wellington Financial Fund II demanded repayment on $6 million in secured debentures.
Sirit, an ISO 9001:2000-certified company and member of the Microsoft Partner Program, has participated in the RF space for more than 12 years and provides low-, high-, and ultra-high-frequency solutions. It has been particularly active in automated toll payment systems but also is involved in embedded RFID reader technology. Customers include end users and original equipment manufacturers.
This article originally appeared in the June 2006 issue of Managing Automation magazine.