Enhances Dover's Product Identification and Traceability Solutions Portfolio
DOWNERS GROVE, Ill., Jan. 6, 2020 /PRNewswire/ -- Dover (NYSE: DOV) announced today that it has entered into a definitive agreement to acquire Sys-Tech Solutions, Inc., d/b/a Systech International ("Systech"), a leading provider of software and solutions for product traceability, regulatory compliance and brand protection. Following the close of the transaction, Systech will become part of the Markem-Imaje business unit, a global supplier of product identification and traceability solutions, in Dover's Imaging and Identification segment.
Systech is headquartered in Princeton, New Jersey, with approximately 170 employees worldwide and serves well-recognized global pharmaceutical and FMCG manufacturers. Systech offers a unique integrated Brand Protection Suite™ for compliance and brand protection applications, including serialization, traceability, anti-counterfeiting and anti-diversion solutions, which help pharmaceutical and FMCG manufacturers to meet evolving product traceability regulations and growing consumer demand for product safety, security and authenticity. Systech's proprietary and innovative e-Fingerprint® technology is a unique non-additive product authentication solution that offers superior levels of protection with lower complexity and cost.
The acquisition will enhance Markem-Imaje's portfolio of product identification and traceability solutions with complementary and highly-demanded software and service offerings catering to a large and growing global brand protection market. Systech's cloud-based software solutions will add recurring software and service revenue to Markem-Imaje's business mix. The combination of Systech and Markem-Imaje's software and service offerings will provide a scaled-up software and service organization that will drive growth and efficiency by cross-leveraging each company's respective channels and global service infrastructure.
"Systech brings a long and successful history of innovation to deliver world-leading solutions to protect brands and products over the past 35 years," said Richard J. Tobin, Dover's President and Chief Executive Officer. "We are excited to bring together Systech's innovative software solutions and Markem-Imaje's scale, global reach and service excellence capability to build a market leader in the brand protection market. This transaction is another building block in Dover's capital deployment strategy that emphasizes investments in attractive close-to-core markets that offer potential for sustainable, profitable growth, and where our team can create value for our shareholders."
Terms of the transaction were not disclosed. The transaction is subject to satisfaction of customary closing conditions, including applicable regulatory approvals, and is expected to close in the first quarter of 2020.
Dover is a diversified global manufacturer with annual revenue of approximately $7 billion. We deliver innovative equipment and components, specialty systems, consumable supplies, software and digital solutions, and support services through five operating segments: Engineered Products, Fueling Solutions, Imaging & Identification, Pumps & Process Solutions and Refrigeration & Food Equipment. Dover combines global scale with operational agility to lead the markets we serve. Recognized for our entrepreneurial approach for over 60 years, our team of approximately 24,000 employees takes an ownership mindset, collaborating with customers to redefine what's possible. Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under "DOV." Additional information is available at www.dovercorporation.com.
Markem-Imaje, an indirect wholly-owned subsidiary of Dover, is a trusted world manufacturer of product identification and traceability solutions, offering a full line of reliable and innovative inkjet, thermal transfer, laser, and print and apply label systems. Markem-Imaje provides global reach to over 50,000 customers with 30 subsidiaries, 6 technology centers, several equipment repair centers and manufacturing plants with the most comprehensive marking and coding portfolio available in the marketplace. Additional information is available at www.markem-imaje.com.
About Systech International:
Systech International, a Princeton, New Jersey-based company, was founded in 1985 and has developed an innovative software suite of products that can uniquely identify products through additive serialized numbers or non-additive e-fingerprints, and then track and authenticate products through the supply chain. Global brands rely on Systech to combat counterfeiters, prevent product diversion, meet regulatory compliance and gain insight with solutions that offer robust brand protection for products as they move through the supply chain. Visit www.systechone.com for further information.
This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements in this document other than statements of historical fact are statements that are, or could be deemed, "forward-looking" statements. Forward-looking statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control. Factors that could cause actual results to differ materially from current expectations include, among other things, general economic conditions and conditions in the particular markets in which we operate, changes in customer demand and capital spending, competitive factors and pricing pressures, our ability to develop and launch new products in a cost-effective manner, and our ability to realize synergies from newly acquired businesses. For details on the risks and uncertainties that could cause our results to differ materially from the forward-looking statements that may be contained herein, we refer you to the documents we file with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2018, and our reports on Form 10-Q and Form 8-K. These documents are available from the SEC, and on our website, www.dovercorporation.com. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
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