Zebra Technologies Corp. said late Thursday it will acquire WhereNet Corp., a provider of active RFID-based wireless solutions used to track and manage enterprise assets, for $126 million in cash.
Headquartered in Santa Clara, Calif., WhereNet provides integrated wireless Real Time Locating Systems (RTLS) to companies in the industrial manufacturing, transportation and logistics, and aerospace and defense sectors.
Independent industry analysts forecast sales of active RFID systems to increase to $6.8 billion by 2016 from $550 million in 2006, a compound annual growth rate of 29 percent.
Zebra management expects WhereNet to generate sales of approximately $50 million in 2007, up from $36 million in 2006. Zebra will operate WhereNet as a separate business unit.