HID gains Dorado’s card, reader business

Dorado now intends to focus resources on its access control, vehicle entry markets
 - 
Sunday, June 1, 2003

BROOMFIELD, Colo. - To provide a dedicated focus to its access control software and vehicle access control businesses, Dorado Products recently sold its card and reader business to HID Corp.

While terms of the April transaction were not released, Dorado’s card and reader business represented one-third of Dorado’s overall business.

“The cost of marketing cards and readers and the infrastructure needed to support the product line was certainly a distraction,” explained Joe Cruz, president of Dorado. “Also, the evolving reader business with its migration towards smart card technology was an investment we were not in the position to make.”

Instead, the company will invest in its vehicle and access control business, enhancing products and developing closer relationships with digital video recorder manufacturers and biometrics companies. Dorado will also maintain its office here.

For HID, the acquisition enables the company to provide any kind of card or reader to its customers.

“This should simplify things a bit,” said Deb Spitler, vice president of marketing for HID. “Now you can place one P.O. and buy your prox product and buy your mag stripe reader product.”

The deal also marked HID’s first acquisition of a card or reader technology since 1996. Seven years ago, HID bought Sensor Engineering, a Wiegand technology business, with plans to increase its customer base by offering Sensor Engineering’s Wiegand card customers a prox solution from HID.

To help with the transition in HID’s latest transaction, Dorado’s lead card and reader sales person, Jack Bubany, has joined HID. Bubany joins HID as its business manager of Dorado products. The product line will now be branded as Dorado by HID.

In turn, Dorado will look to change its name over the next 18 months, which is when its right to use the Dorado name expires.

Cruz said company officials are considering using product names Maxx-Star and Maxx-Park to distinguish itself and its two remaining businesses, but are still working out the details of a corporate name.