Shell company plans to buy Checkpoint's access business
NEW YORK--Checkpoint Systems has entered into a non-binding letter of intent to sell the assets of its Checkpoint Access Control Group to L Q Corp., a public shell company that has been looking to invest in the security market.
The two companies inked the agreement in early September. It is subject to the approval of Checkpoint Systems' board of directors and government regulators.
For $2.5 million, minus post-closing adjustments, L Q Corp. would obtain the assets of Checkpoint Access Control Group, including its recently released Pinnacle facility access control system.
"We're in the final stages of negotiations," said Bill Fox, chief executive officer of L Q Corp. Fox said the deal could close in late October.
Officials from Thorofare, N.J.-based Checkpoint Systems could not be reached for comment prior to press time for the Security Systems News Newswire.
The planned sale of Checkpoint Access Control Group should come as little surprise to the industry.
In early August, Checkpoint's 10-Q filing with the Securities Exchange Commission revealed plans to focus on its core business and exit underperforming businesses. It identified its electronic article surveillance and close circuit television businesses as areas it would focus on for "business investment and growth."
L Q Corp. was formerly known as Liquid Audio and provided a software platform that enabled people to listen, buy and download music from the Internet. Its board of directors decided to dissolve the company in early 2003 and sold its business to Geneva Media.