The $240,000 (Snifex) deal, which was announced Wednesday, brings into Magal's stable of security products a unique technology which detects trace amounts of drugs or explosives without direct contact with the object.
Raya Asher, CFO at Magal, said the purchase of Snifex adds a complementary product to Magal's existing product line.
"We already have good relationships with security personnel at prisons, airports, and government offices and believe they will want a system that can detect drugs or explosives," she said.
In addition, she added: "The price was good. It was not a big investment to risk and we saw the potential." The two founders of Snifex hold the rest of the shares.
Did anyone see last nites Dateline report on NBC regarding US Customs strip searches of woman at airports? Apparently in their quest to stop illegal drugs from entering this country , US Customs agents are going to extreme lengths to catch drug smugglers. So desparate they are, their strip searches have produced an outcry and lawsuits will be forth coming. Drug smugglers swallow ballons filled with drugs for sale here. This pracatice is growing and is very lucative. Snifex's product will be the winner here provided their technology is not harmful and if they and Magal can market and promote the technology effectively. Magal is a company with state of the art technology, growing markets to sell their products to, a solid balance sheet, sufficient cash to operate, and they sell below book value. Their time will come again soon.