Found this on Gemplus web site today. Any comments? Seems to be getting positive reaction in the share price....
MCO
Luxembourg (August 17th, 2001) - Gemplus International S.A (Euronext: Sicovam 5768 and NASDAQ: GEMP) today announced the sale of its TAG subsidiary, a leading provider of electronic smart labels solutions based on RFID (Radio Frequency Identification) to Axa Private Equity. The terms of the agreement have not been disclosed.
Gemplus is strategically focused on three core marketplaces: telecommunications, financial services and e-business security. The sale of TAG allows Gemplus to intensify its market driven approach within its strategic competencies and dedicate more resources to their growth.
"We are focused on delivering high value solutions and moving up the value chain in our target markets," said Antonio Perez, President and CEO of Gemplus. "Our strategy involves concentrating our effort and investment into meeting the needs of our key customers. We are succeeding in this vision because we can give our core markets the focus and expertise they are demanding".
The deal has the full support of the TAG management team and TAG has been sold as a going concern. It will continue to offer RFID support to a variety of blue chip customers, including Air Liquide and Marks & Spencer.
"Gemplus is happy that a suitable buyer has been found for the TAG subsidiary. The business case and the management of TAG were never an issue in the decision to sell. We are confident that TAG will succeed in the future and that the sale benefits both parties," added Perez.
Axa Private Equity is a management firm with expertise in all areas of private equities (LBO's, venture capital, growth expansion, recovery, funds of funds).
TAG employs approximately 100 people. |
