Santa Ana’s Hirsch Electronics Corp., a maker of security systems for computer networks and buildings, was bought by Germany’s SCM Microsystems Inc., a maker of smart card readers.
Terms of the deal, which was done with cash, stock and debt, weren’t disclosed. It’s expected to close in the first half of next year.
Hirsch, which had been around for more than 25 years, makes smart cards, sensors and card readers here. It has some 22,000 square feet of space in Santa Ana.
The privately held company has about 100 workers here and doesn’t disclose sales.
It’s set to operate as a subsidiary of SCM Microsystems and keep its company and brand names.
Hirsch’s upper ranks will stay intact. President Larry Midland is set to get a seat on SCM’s board.
“There is so little overlap in personnel, geography and product lines that we only anticipate expansion in Orange County,” said Hirsch spokesman Scott Howell. “They are strongest in Europe and Asia, while we are strongest in the U.S.”
SCM Microsystems is publicly traded on the Nasdaq exchange and had a recent market value of about $25 million.
The two companies had close ties before the deal and had collaborated on several product lines, including smart card readers that are used to log into computer networks and for building access, Howell said.
“Being closer tied, we’ll have a better ability to develop advanced security solutions,” he said. “They have deep expertise in chip design and cryptography, which complements Hirsch’s expertise in security systems development.”
Hirsch also makes the software that runs security readers and other surveillance gear.
The company’s customers include federal, state and local governments in the U.S. and abroad. It also sells to hospitals, schools and utility companies.
