Access control provider Sielox goes private
RUNNEMEDE, N.J.—Sielox LLC, a manufacturer of access control products, and a former division of Checkpoint Systems, became a private company following a New Year’s Eve $2.55 million management buyout, the company announced Jan. 4.
“We saw an opportunity to take the company private,” said Karen Evans, president and CEO of Sielox LLC, and a member of the investor group. In addition to the savings associated with being a non-public company, Sielox will continue to “add development dollars to bring our new software enhancements, as well as new hardware products.”
Evans said the company “will be more visible to the channel” in the future and “was immediately hiring two sales people, and after that we’ll be investing in R&D.” Sielox currently has 20 employees.
Sielox manufacturers an access control software called Pinnacle, controllers, and related accessories here in New Jersey. It also “OEMs other products made by HID and others to work with our products.”
Sielox was founded in 1979. It was purchased by retail security specialist Checkpoint Systems in 1986 and was a small division of that company until it was sold in 2006. In 2007, Sielox’s parent company, Sielox Inc., bought Costar Video Systems. The companies operated independently, but Sielox sold Costar products through its partner channels. Sielox deregistered from the OTC Bulletin Board in February 2010.
Under the new arrangement, Sielox Inc. will continue to own and operate CoStar as a public company. It will change its name to CoStar Video Technologies and its symbol on the Pink Sheets with change as well.
CoStar will be based in Carrollton, Texas.
AS part of the deal, Sielox assumes $113,000 in liabilities. It also agreed to purchase $5 million of Costar video products through its business-partner channel over a three-year period, according to a Sielox Inc. statement.
James Pritchett, president and CEO of Sielox Inc., said the deal will help his company generate $2 million in additional sales over its current run rate. Additionally, the deal helped the company wipe out its debt and is expected to enable the company to renegotiate a more-favorable credit line, according to the statement.