ActivCard swipes credential management provider
FREMONT, Calif.Ã¢â‚¬â€ActivCard Corp., a publicly held provider of digital identity systems, announced plans to acquire Canberra, Australia-based Protocom Development Systems, a privately held supplier of credential management products, for $21 million in cash and 1.65 million shares of common stock.
ActivCard executives said the overall headcount of the merged companies would be reduced by 13 percent, in an effort to achieve profitability. The majority of the layoffs will be complete by the end of September.
ActivCard, which disclosed its plans on July 27, expects the deal to be finalized within 10 days of the date.
The restructuring will result in approximately $11 million per year in savings, the company said. Staff in sales, marketing, administration and product development will be affected. The company will also consolidate facilities.
ProtocomÃ¢â‚¬â„¢s main focus is on the healthcare, government, finance and commerce industries. Its U.S.-based healthcare customers include Maine Medical Center, Gundersen Hospital and Wellstar Health Systems. The company has regional offices in Sacramento, Calif., and Brielle, The Netherlands.
Ben C. Barnes will remain chief executive officer of ActivCard once the deal closes.
Jason Hart, founder and chief executive officer at Protocom, will assume the role of senior vice president of sales and marketing, reporting to Barnes.
To oversee the integration of the two companies, the company created the position of chief restructuring and integration officer. Thomas Jahn, whose experience includes working in management roles at IBM and Tyco, is charged with helping the company meet financial and operational efficiency goals.