Tyco's Sensormatic Division Buys Vue Technology

By Beth Bacheldor

Oct. 9, 2008—Electronic article surveillance (EAS) and RFID systems manufacturer Sensormatic, part of Tyco International, has plunked down $43 million to purchase Vue Technology, which makes RFID-enabled item-level tracking systems designed to improve inventory, optimize replenishment, reduce labor costs and boost sales.

Sensormatic's goal for the acquisition is to expand its product portfolio for retailers. For Vue's part, being acquired will bring it under the fold of a company with global reach in the retail market.

Robert Locke

"Sensormatic has been involved in RFID for almost a decade, and like a lot of companies, we've tried different things and struggled with how this technology was going to evolve," says Scott Clements, Sensormatic's VP and general manager, adding that the firm has developed RFID systems for the supply chain and other applications. "Like everyone else, we weren't seeing the kind of traction we'd hoped. So about a year ago, we started thinking about where we wanted to go."

Since the retail sector was Sensormatic's major focus, the company began seriously considering the use of radio frequency identification to track individual items within stores. "And the biggest value is, that is the part of the retail supply chain that we know best," Clements says. But rather than be merely a manufacturer of components, Sensormatic aspired to become a solutions provider.

"Customers wanted someone to help them solve their problems," Clements states. "So we realized we needed an enterprise software capability that would take RFID coming out of the sensors and other products, and then take that data and turn it into actionable information. We looked at our different opportunities, and knew that Vue was the best fit."