rfXcel has agreed a deal to acquire the assets of fellow Californian company Frequentz that it says will boost its position in the food traceability market.
The deal brings together two businesses with a similar focus. Set up in 2003, rfXcel operated mainly on the life sciences industry initially, but has latterly been eyeing expansion into new sectors and specifically the seafood industry. Meanwhile, Frequentz also has a long heritage in pharma but has been pushing hard into food and produce, for example in segments such as seafood, coffee and fruit, as well as consumer goods.
Putting the two privately-held businesses together with create “the leading provider in the life sciences and food industries that is able to offer full data and system validation,” said a company spokesman.
“Other providers are narrowly focused on only one industry and/or do not provide a system that offers both data and systems validation,” he asserted.
In practice that means taking responsibility for the integrity of the data generated by a serialization programme – for example picking up duplicate serialization numbers – rather than passing that responsibility onto the customer who then runs the risk of passing erroneous data down the supply chain.
The deal sees rfXcel acquiring “Frequentz technology, patents, contracts and personnel”, with the new owner taking over responsibility for customer relationships and support for all Frequentz’ pharma and food clients. However, there will be no relocation of personnel or transfer of facilities, said the spokesman. No financial details of the deal are being disclosed.
The takeover comes after rfXcel raised $30m in second-round funding over the summer, saying at the time that this would be a “transformative” event for the company.
rfXcel chief executive Glenn Abood said the acquisition “will add to our expanding footprint in the global life sciences space and launch us into the food industry,” while his counterpart at Frequentz – David Sweat – said the combined company “will be the best positioned player in this fast-growing industry.”