Applied Digital announced today that VeriChip Corporation, its wholly-owned subsidiary, has completed the acquisition of eXI Wireless of Vancouver, British Columbia.
As a result of the transaction, VeriChip Corporation will now offer RFID Products for People, through a complete array of implantable and external RFID products for people in the healthcare and security environment. In addition to the VeriChip (implantable microchip), which was cleared by the FDA for its medical applications in October, 2004, VeriChip Corporation will now offer eXI’s premier RFID products: HALO, RoamAlert, and Assetrac.
HALO is the leading system for infant hospital security, helping healthcare facilities prevent infant abductions, accidental baby switching, and medical equipment theft and loss while providing a safe work environment for facility staff.
RoamAlert Wander Protection System is the next generation in patient wandering protection, helping assisted living and skilled nursing facilities protect their patients while not restricting the residents’ freedom of mobility.
Assetrac Location & Protection System is a flexible asset protection system for facility-wide cost savings that helps healthcare facilities prevent medical equipment theft and loss, enabling administrators to quickly locate and track assets throughout the hospital.
In connection with the acquisition, the Company has promoted Kevin H. McLaughlin to the position of CEO of VeriChip Corporation. Mr. McLaughlin has served as Applied Digital’s President and COO since March, 2003. He will now exclusively focus on VeriChip Corporation.
In addition to these complementary products and services, eXI brings a proven management team and over 200 dealers/distributors in North America. It is intended that these dealers will now distribute all VeriChip Corporation products and services.
VeriChip Corporation is expected to achieve revenue goals of $8-10 million in 2005.
Commenting on the growth and management changes at VeriChip Corporation, Scott R. Silverman, Chairman and CEO of Applied Digital stated, “This is an exciting day in the evolution of VeriChip Corporation. The eXI acquisition furthers our objective of combining innovative technology with a complementary operating company. VeriChip Corporation can now offer its FDA cleared ID microchip compatible for medical and security applications while complementing it with eXI’s proven line-up of external RFID products for people in a healthcare environment. eXI’s proven distribution stream of over 200 dealers will also increase VeriChip distribution opportunities.”
Silverman continued, “The simultaneous and official appointment of Kevin McLaughlin as CEO of this new-combined corporation will provide it the leadership that a technology company of this type merits. Kevin has clearly proven himself with the operational and balance sheet improvement at Applied Digital over the last two years. I, and the Board of Directors, are confident that Kevin will lead VeriChip Corporation to great heights.”