Smartrac snaps up e-tolling provider

[EMDEDDED]Radio frequency identification (RFID) provider, Smartrac has signed an agreement to acquire Neology, a provider of integrated solutions for the tolling, electronic vehicle registration and public safety markets, RFID News reports.

More RFID says, under the terms of the agreement, Smartrac will purchase Neology for $30 million, on a cash and debt-free basis.

The parties have agreed on an earn-out component of up to $9 million based on results of operations for the years 2011 and 2012.

Tenedora, the current majority shareholder in Neology, will retain a 15% stake in Neology and has agreed to reinvest any earn-out payments it may receive into the combined company.

This acquisition comes just two months after Smartrac was forced to cease manufacturing at its five production facilities in Ayutthaya, due to the severe flood disaster in Thailand, Security Document World states.

However, Smartrac confirms it has restarted production in Thailand.