VeriChip Corporation, a provider of RFID systems for health care, has announced that it will acquire identity security products provider Steel Vault in a business merger that will ultimately create PositiveID Corporation.
According to Scott R. Silverman, the current Chairman and CEO of VeriChip, PositiveID will be the first company of its kind to address the issue of online security when it comes to electronic health records.
Health care records are quickly going digital for greater efficiency in hospital operations, but many fear this comes at the cost of compromised security. PositiveID plans to bridge this gap, combining VeriChip’s EHR technology with Steel Vault’s ID security prowess.
The merger is a stock-for-stock transaction, with Steel Vault stockholders receiving 0.5 shares of VeriChip stock for every single share of Steel Vault stock held. The company will be traded on NASDAQ under PSID.