RFID Business Unit of HEI Acquired by SMARTRAC

gif The Dutch company SMARTRAC N.V. announces that it has signed a purchase agreement with the U.S. company HEI, Inc., to acquire substantially all of the assets of HEI RFID, a division of HEI, Inc. SMARTRAC intends to start local U.S. production of RFID components under the new business name of SMARTRAC Technology U.S., Inc., a Delaware company and wholly owned subsidiary with operations in Chanhassen, MN.

HEI’s RFID Division, formerly known as Cross Technology Ltd., is a contract manufacturer providing customized RFID tags for a variety of applications. The company is particularly strong as a provider of customer specific RFID tags for which standard products are not sufficient. SMARTRAC will integrate the existing RFID business of HEI into SMARTRAC’s operations with all of the current management and personnel under SMARTRAC Technology U.S., Inc. The change will be seamless with all existing production and scheduled ship dates remaining in tact. This acquisition adds exciting new resources and capabilities to the company’s portfolio.

“Our U.S. operation will open up interesting prospects for SMARTRAC with new products and access to an additional customer base, and it will intensify SMARTRAC’s presence in the U.S. market,” says Dr. Christian Fischer, CEO of SMARTRAC. “With its experience and expertise in the development of customized RFID components, the HEI RFID division will further strengthen our research and development activities.”

Purdue Pharma Selects Systech to Provide Sustainable Infrastructure for Serialization

jpg Systech International™ announces that its Serialized Product Tracking (SPT) application has been successfully implemented by Purdue Pharma L.P. to provide the key commercial infrastructure needed to expand Gen 2 RFID tagging of OxyContin® tablets. SPT is enabling Purdue to extend the protection of its product while maintaining overall operational efficiency.

Purdue leveraged the Systech SPT application in its Wilson, NC, facility. Systech SPT appealed to Purdue and its need for an integrated solution to expand the number of product SKUs actively tagged, while ensuring the efficiency of its packaging and shipping operations. The initial project, now a fully operational deployment, provides Purdue with a scalable, sustainable, and repeatable infrastructure to address those needs. The infrastructure now in place offers item-level serialization, case aggregation, and an interface to the SAP AII EPCIS.

“The Systech Serialized Product Tracking application provides us with insight into our products and packaging lines from the item level through the case and to our customer orders,” says Jeffrey Zerillo, Senior Executive Director, Supply Chain at Purdue. “This increased level of visibility helps to protect the authenticity and integrity of our products in the supply chain. Implementing Systech’s Serialized Product Tracking gives us a scalable platform for serialized product tracking that can help us meet regulatory requirements, protect supply chain integrity, and maintain vital operational efficiencies.”

“We are seeing more and more pharmaceutical companies turn to our serialization products as a means of addressing regulatory compliance and authentication demands,” says David DeJean, Director of Sales, Serialization Products, Systech International. “Our software enables the serialization technology that enhances product tracking throughout the supply chain.”

TAGSYS Receives $16 Million in Second Tranche of $35 Million Funding Round

gif TAGSYS closes $16 million in the second and final tranche of its $35 million Series C round of funding. This brings total company financing to $80 million. TAGSYS’ latest funding comes on the heels of unprecedented product releases and customer wins and will allow the company to capitalize on the accelerated demand for item-level RFID systems in existing and breakthrough vertical markets. In addition to the latest oversubscribed round of funding, TAGSYS’ strong performance also won recognition from Venture Development Corporation (VDC) as a “Best Bet for RFID Investors” in 2007.

“We see market demand in alignment with our vision of RFID as part of the network fabric with a universal infrastructure — all built on standards and with quality-of-service guarantees,” says Elie Simon, President and CEO of TAGSYS. “This new infusion of capital will enable TAGSYS to continue broadening our product portfolio and respective patent position to accelerate our leadership position in the industry.”

Participating in the financing were all current investors. Participants included J.P. Morgan, DFJ Esprit (formerly Cazenove), Endeavour, Elliott Associates, L.P., Saffron Hill Ventures, and Add Partners.