C-Chip ends talks with Unique Security
MONTREAL- C-Chip Technologies, a publicly held developer of wireless technology used for tracking purposes, announced it ended discussions to acquire Unique Security, a full-service security company.
The deal, which was first announced in June, would have enabled C-Chip to leverage its wireless technology and Unique SecurityÃ¢â‚¬â„¢s monitoring station against the emerging market of automatic vehicle location.
C-Chip had proposed to pay CDN 1.8 million ($1.4 million) in stock for the alarm company.
Ã¢â‚¬Å“It was essentially a question of dollars and cents,Ã¢â‚¬Â said Stephane Solis, president and chief executive officer at C-Chip. Ã¢â‚¬Å“We decided to walk out.Ã¢â‚¬Â
Calls for comment to Jean-Guy Vandal, founder and president of Unique Security, were not returned as of press time.
Ã¢â‚¬Å“Mr. Vandal, the sole shareholder, agreed to go down but not as far as we wanted,Ã¢â‚¬Â said Solis.
When the deal was disclosed, Unique Security told Security Systems News that the company earned approximately $3.7 million in revenue for its fiscal year that ended in August 2003.
But according to Solis, Unique SecurityÃ¢â‚¬â„¢s numbers did not match up.
Ã¢â‚¬Å“They were not necessarily profitable- they were losing not a whole lot, but a little,Ã¢â‚¬Â said Solis.
Bundling its wireless technology with the services of a central station would have enabled C-Chip to offer applications such as automatic vehicle location, which involves installing a tracking device on automobiles for the purpose of identifying stolen cars, for example.
Solis said he is still looking to acquire a company that would increase C-ChipÃ¢â‚¬â„¢s position within the security industry.
Ã¢â‚¬Å“WeÃ¢â‚¬â„¢re looking at different types of service, not necessarily central monitoring,Ã¢â‚¬Â said Solis. Ã¢â‚¬Å“But to be able to provide strong services to our client base, clearly a central monitoring station provides added value.Ã¢â‚¬Â
Solis has not completely abandoned the prospect of acquiring Unique Security.
Ã¢â‚¬Å“We may enter into renegotiations with Unique Security down the road if (the owner) agrees to terms,Ã¢â‚¬Â said Solis.