Sirit Set to Acquire Tag Maker RSI ID

"Our core competency is in going to a customer and creating a specialized product for them, and then ramping up volume to meet their demands," says Bielas. "We are a specialty house." That said, the company does use standardized tag protocols for the ultrahigh-frequency (UHF), high-frequency (HF) and microwave (2.45 GHz) tags it produces. While many of RSI ID's existing customers are supply chain companies looking to track products that require customized tags, Bielas says that its customer base has grown in recent months to include many firms not involved in supply chain applications.

As a part of Sirit, Chodarcewicz says, RSI ID will now be able to approach customers with a complete hardware solution. "Sirit would focus more on the reader side, whereas RSI will provide tags, inlays and tag antennas," she explains. "We can offer a full suite of products, so this is a growth opportunity from both of our perspectives." Sirit, she adds, sources its active and passive tags from a number of vendors, without exclusivity, and will continue to do so going forward.

Wolf Bielas

Sirit and RSI ID have been actively developing joint solutions and marketing strategies for more than a year, Chodarcewicz says. Electronic vehicle registration (EVR), she notes, is one market the two companies are targeting. EVR, in which passive tags on license plates serve to verify registration and monitor traffic, is a growing application (see Electronic Vehicle Registration Picks Up Speed). RSI ID has also developed a line of tamper-evident tags, which could add value to a number of Sirit applications, including vehicle, personnel and product tracking.

In addition, the two firms will also gain a wider geographic customer base through the merger, since many of Sirit's current applications are deployed primarily in Europe, while RSI ID has a stronger presence in South America and Southeast Asia.

The all-stock transaction is expected to close on or near April 1 of this year. Sirit will initially pay 10 million Sirit common shares for the company. However, Chodarcewicz says, RSI ID's shareholders will have the potential to receive additional shares over a 21-month period if the firm attains preset financial goals.

RSI ID has 21 employees and operations in Chula Vista, Calif., with a sales office in Hong Kong.