Pricer acquires Electronic Shelf Labels supplier Eldat for $40 million in stock transaction

noreply@blogspirit.com (ARPU~UP) — Tue, 25 Apr 2006 07:40:00 +0200

Pricer, the Swedish supplier of electronic display and information systems to the retail industry, has agreed to acquire the Israeli vendor of Electronic Shelf Labels (ESL), Eldat Communication, for $40 million in stock transaction. The merger will form the world’s principal provider of advanced Electronic Shelf Label systems for retailers. The joint companies' pro forma 2005 sales are $60 million with approximately 160 employees.

This acquisition brings Pricer’s global market share above 60 percent and further accelerates the company's ambitions in this industry. Pricer will acquire 100 percent of the shares in Eldat and in exchange issue 261.8 million Pricer shares giving the owners of Eldat close to 26 percent ownership of Pricer.

Established in 1994, Eldat has developed unique capabilities in the infrared communication field, based on experience in the development of Electronic Defense Systems and Integrated Circuit design (ASIC). Eldat had sales of USD 17.2 million in 2005, gross profit of 32% and a net result of USD 0.2 million. The Israeli company employs about 45 people in offices in Tel Aviv and Paris.

Pricer, listed of the Stockholm Stock Exchange, offers electronic information systems that significantly improve customer profitability and productivity. The joint companies will have over 33 million ESL’s installed with over 2,700 stores including many of the world’s largest retailers.

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Israel Science Technology - retail

Pricer acquires Electronic Shelf Labels supplier Eldat for $40 million in stock transaction