Monday, June 23, 2008

OATSystems sells to N.J. firm Checkpoint Systems

By Mass High Tech Staff

Waltham-based radio frequency identification (RFID) application software and middleware maker OATSystems Inc. has entered into a definitive agreement to be acquired by New Jersey-based Checkpoint Systems Inc.

Officials did not disclose the financial details of the transaction, but said the all-cash deal is expected to close in the next two weeks.

Under terms of the agreement, OATSystems’ senior management, including president and CEO Michael George, will continue to operate the business as a division of Checkpoint (NYSE: CKP). The company will continue to use and develop the OATSystems brand and software platform to serve retail, consumer products and industrial customers, according to a company statement.

OATSystems, which makes software and hardware for management of RFID systems in retail and industrial environments, was founded in 2001. The 50-person company has raised $25 million in private funding. Investors include Matrix Partners and Greylock Partners, both in Waltham.

Earlier this month, OATSystems announced it had integrated its products with those of software giants SAP AG and Oracle Corp., adding to a previously established partnership with IBM Corp.

The company claims more than 100 customers worldwide, covering the retail, consumer packaged goods, consumer electronics, manufacturing, life sciences, aerospace and defense industries.

Founded in 1969, Checkpoint makes systems for tracking and protecting people and assets, from paper-based tagging systems to RFID to electronic fire and security systems. According to the company’s annual report for 2007, Checkpoint employs almost 4,000 people, and generated $835 million in sales for the year, with a net income of $59 million.