Archive for the ‘Mergers & Acquisitions’ Category

ODIN purchases Mass.-based REVA Systems

Thursday, December 9th, 2010

M&A activity in the RFID sector will likely heat up significantly in 2011, but ODIN technologies got a head start on the action Thursday when it acquired Massachusetts-based REVA Systems, a developer of RFID network infrastructure products.

ODIN CEO and founder Patrick Sweeney wouldn’t reveal the purchase price in a story in the Boston Globe, saying only that it’s “a mostly stock deal, with a little bit of cash.”

ODIN has reportedly received numerous buyout offers itself, but Sweeney — who has founded and sold businesses in the past — has resisted selling. While RFID 24-7 has speculated in the past that ODIN was a potential acquisition target, this deal would suggest that Sweeney has bigger plans. If a buyout were to occur, it is likely at least two years away. That’s about how much time it would take ODIN to digest REVA and allow it to add significant value to the firm.

REVA is the second Massachusetts-based RFID company to be gobbled up this quarter, following the October buyout of  ThingMagic by Trimble.

More from the Boston Globe story:

And just today, another acquisition closed: Virginia-based ODIN Technologies, a small firm that sells RFID-related software and services, is buying Westford-based Reva Systems — once more, for an undisclosed sum. Reva had raised about $35 million in funding, much of it from North Bridge, Charles River Ventures, and Cisco.

Patrick J. Sweeney II, ODIN’s founder, says that Reva will become his firm’s Massachusetts office, and he’ll retain about ten members of Reva’s technology team. While Reva’s chief executive, Bruce Berger, installed just last year, won’t stay after the acquisition, Sweeney tells me that co-founder Ashley Stephenson and technology vice president Scott Barvick will. Sweeney also plans to hire more engineers (Java developers specifically) in Massachusetts.

Sweeney says that ODIN primarily puts together RFID systems for clients in healthcare, government, and financial services. He found Reva appealing for the real-time location system it developed using inexpensive, “passive” RFID tags, which don’t require a battery.