C-Chip ends talks with Unique Security

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Monday, November 1, 2004

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 Security’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.

“It was essentially a question of dollars and cents,” said Stephane Solis, president and chief executive officer at C-Chip. “We decided to walk out.”

Calls for comment to Jean-Guy Vandal, founder and president of Unique Security, were not returned as of press time.

“Mr. Vandal, the sole shareholder, agreed to go down but not as far as we wanted,” 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 Security’s numbers did not match up.

“They were not necessarily profitable- they were losing not a whole lot, but a little,” 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-Chip’s position within the security industry.

“We’re looking at different types of service, not necessarily central monitoring,” said Solis. “But to be able to provide strong services to our client base, clearly a central monitoring station provides added value.”

Solis has not completely abandoned the prospect of acquiring Unique Security.

“We may enter into renegotiations with Unique Security down the road if (the owner) agrees to terms,” said Solis.