Brady Corporation (NYSE: BRC) and Nordic ID Oyj (HEL: NORDID) announced 15.4.2021 that they have entered into a definitive transaction agreement pursuant to which Brady will launch an all-cash tender offer in Finland to acquire all of the outstanding shares of Nordic ID for EUR 3.30 per share, which equates to a total equity purchase price of EUR 8.1 million (USD 9.7 million), plus the assumption of external debt of approximately USD 3 million. Brady Corporation will fund the transaction with cash held outside the United States.
Nordic ID was founded in 1986 and is headquartered in Salo, Finland, and is publicly traded on the Nasdaq First North Growth Market of Nasdaq Helsinki Ltd. The Company specializes in RFID readers, scanners, and the associated software to power track and trace applications within the industrial setting. Nordic ID provides a solution that brings a digital identity to every component of a product by enabling customers to track and analyze the movement, status and location of products while generating intelligent data throughout the manufacturing process. Brady is a leader in high-performance niche application industrial printers and materials, and the acquisition of Nordic ID positions Brady as a full-service provider of printer and material expertise with Nordic ID’s readers, scanners and software. Brady expects to retain Nordic ID’s headquarters and RFID center of excellence in Salo, Finland while expanding its addressable market through the utilization of Brady’s global footprint.
“The acquisition of Nordic ID allows Brady to diversify and expand our presence in RFID into attractive new markets with faster organic growth rates,” said Brady President and Chief Executive Officer, J. Michael Nauman. “Nordic ID has excellent technology and a complementary product offering to Brady that will help us expand in the fast-growing end markets of track and trace in industrial settings. We intend to increase the R&D efforts at Nordic ID to accelerate new product introductions and to expand its product offering both within and outside of Europe. Nordic ID’s technology combined with Brady’s leading market position in niche application industrial printers and materials make this an attractive business combination in the fast-growing arena of track and trace applications within the industrial setting.”
“After careful examination of the Tender Offer, the Board of Directors of Nordic ID has decided to unanimously recommend the shareholders to accept the tender offer, and the major shareholders have expressed their support for the combination. The Board of Directors of Nordic ID believes that Brady’s global reach, strength of brand and cross-selling opportunities would benefit the activities of Nordic ID. The Board has also received a fairness opinion from Translink Corporate Finance Oy which concludes the transaction to be fair from financial point of view to shareholders. Combining Nordic ID’s business with Brady would offer the customers of both Nordic ID and Brady a wider and more innovative RFID portfolio which would improve competitiveness of the combined business unit, especially in the eyes of global customers,” said Jorma Lalla, the Chairman of Nordic ID.
Juuso Lehmuskoski, the CEO of Nordic ID, continued: “RFID and the IoT market is experiencing fast-paced market consolidation right now. This was to be expected as the technology matures and becomes more widely accepted. As a small independent operator, Nordic ID would be vulnerable to external risks within the market. We are excited about the prospect of becoming part of Brady Corporation to further expedite the growth and utilization of Nordic ID’s technology. Based on discussions and planning with Brady, Nordic ID will continue to operate out of Salo, Finland with strengthened resourcing for development of new innovations. This allows us to further grow our existing development capabilities and teams in Salo to execute our shared roadmap with Brady. Strategies between Brady and Nordic ID are aligned and being part of a strong team like Brady, creates the perfect platform to take Nordic ID to the next level. With the resources and synergies of being part of Brady Corporation, we are able to expedite the roll-out of new innovations and invest in the future development of Nordic ID’s technology.”
Disclaimer: This is NOT an official announcement. The official announcement can be found by following this link: https://www.nordicid.fi/sijoittajille/ostotarjous/