RFID container tracking company sold to Lockheed Martin
Lockheed Martin Corp., the world's largest defense contractor, said it plans to acquire Savi Technology, an early developer of active radio frequency identification systems for tracking containers.
Savi tracking systems are used by the U.S. Defense Department, NATO, as well as defense agencies in the United Kingdom, Denmark and Australia to track military shipments and inventories around the world. Savi provides electronic identification tags, readers to pick up the signals, a wireless network to upload the information to a central database and software that provides container status information to customers.
Lockheed Martin said the sale is expected to close in the second quarter, pending normal regulatory reviews. The boards of both companies have approved the sale. Sunnyvale, Calif.-based Savi is privately held.
Savi will be a standalone subsidiary within the Lockheed Martin Integrated Systems and Solutions group.
The U.S. military has used the Savi system since 1994 to manage its shipments. In February, the Defense Department extended its contract with Savi by two years and raised the contract ceiling from $208 million to $425 million. Lockheed Martin is expected to use its relationship with the Defense Department to expand uses for RFID.
Last year, Savi and Hutchison Port Holdings, the largest global port terminal operator, formed a joint venture to help commercial shippers track and manage containerized cargo on a shared network. Shippers pay a fee for each container shipment to use Savi’s information services. The tags can be linked to sensors that detect door tampering for security purposes and environmental conditions.
Savi is owned by several international ocean transportation companies, including Hutchison Port Holdings; Singapore government investment arm Temasek Holdings, which owns terminal operator PSA International, Neptune Orient Lines, APL and Singapore Airlines; UPS; Sembcorp Logistics, Mitsui and Co. Ltd.; and information technology provider Oracle.