ABSEC, the Co Down-based company which specialises in providing cashless payment systems, is in negotiations to be acquired by a US competitor, PubliCARD.
PubliCARD, a Nasdaq-quoted provider of smart card technology, is seeking to break into new markets through the acquisition.
The managing director of Absec, Mr Colin Foster, said the acquisition was a means for his company to reach the US market through the synergies it has with PubliCARD's products.
"It is a way of getting onto the Nasdaq and it is also a way of accelerating growth."
Absec will retain its name and its Irish operations. "The skills are here and are not transportable. It is very much part of the understanding. We run a successful organisation and fill a particular slot in their total organisation," Mr Foster said.
Earlier this year, Absec, which is based in Bangor and employs 57 people, was awarded the Compaq Trade Award for 1999 for its contribution to cross border trade.
It is a leading provider of cashless payment systems, used in staff canteens, for security access, and in the control of photocopiers. It has also developed a "pay as you burn" smart-card system for cardiovascular exercise equipment for sports centres. It had a turnover of £3.5 million sterling (€5.3 million) last year but expects this to grow to £5.5 million sterling (€8.3 million) this year.
Mr Foster added that a distribution centre was planned for the Republic. The company already has offices in Trafford, England, "There will be much higher investment in the company," he said.
A letter of intent had been signed and due diligence had been completed by PubliCARD.
Mr James Weis, PubliCARD's chief executive, said the planned acquisition would focus the company on Internet and electronic growth areas "where chip technology will play a major role".
"The acquisition of Absec, a leading designer, manufacturer and distributor of chip-based cost recovery and cashless payment and control systems, is expected to position PubliCARD as a competitive provider of multi-application chip-based solutions to the university and corporate campus markets," he added.
PubliCARD, based in Connecticut, employs 185 people. Yesterday it announced that turnover for the six months to June 30th increased by 38 per cent to $11.5 million compared to $8.3 million in the same period in 1998.
