SMARTRAC N.V. , a manufacturer and supplier of RFID transponders, and On Track Innovations Ltd , a provider in contactless microprocessor-based smart card solutions, announced that they have signed binding agreements by which SMARTRAC acquires the assets of OTI’s subsidiary Millennium Card’s Technology Ltd. and the machinery and inlay production intellectual property from OTI for around $12.5 million in an asset deal. The two signed a supply agreement that will fully secure OTI’s delivery of products and projects and SMARTRAC becomes OTI’s exclusive supplier for wire-embedded and Dual Interface Inlays.
In addition, both parties will mutually accept and respect each other’s patents especially in the field of wire-embedding and dual interface technology. As part of the agreements, all patent litigations and in particular all patent infringement legal proceedings between SMARTRAC and OTI have been ceased.
According to the asset agreements, SMARTRAC acquires certain machinery and production intellectual property from OTI and Millennium Card Technology. As a result, OTI will cease to produce inlays, and SMARTRAC will become OTI’s exclusive supplier for wire embedded and dual interface inlays. According to the agreement, OTI will be able to continue to fulfill its existing obligations and existing orders at the MCT site.
The parties have also signed a supply agreement by which OTI will get defined lead times, production allocation and pricing of SMARTRAC products. The supply agreement ensures OTI’s ability to continue and support their customers with SMARTRAC’s unique manufacturing technology and increased capacity.