DEERFIELD BEACH, Fla. -- Sensormatic Electronics Corp. here will acquire virtually all of Knogo Corp.'s international operations, according to an agreement signed last week.
The merger between the two leading manufacturers of security systems for supermarkets and other classes of trade is subject to approval by the Federal Trade Commission and by Knogo's shareholders, who are scheduled to meet in October, Knogo officials said.
Under the arrangement, Sensormatic will acquire Knogo Corp., Hauppauge, N.Y., in exchange for about 3.2 million shares of Sensormatic common stock. Prior to closing the transaction, a new company called Knogo North America will be spun off to operate Knogo's business in the United States, Canada and Puerto Rico. Sensormatic would absorb the remaining Knogo Corp. assets, including exclusive rights to the Knogo name and products outside North America.
Tom Nicolette, president, chairman and chief executive officer of Knogo Corp., told SN he would hold the same titles at Knogo North America and Knogo's senior management would remain with the new company. "Knogo North America will emerge with over $24 million in assets, be debt-free and have $1.5 million in cash," Nicolette told SN.