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SECURITY TAG ANNOUNCES MERGER AGREEMENT WITH SENSORMATIC

SECURITY TAG ANNOUNCES MERGER AGREEMENT WITH SENSORMATIC
 ST. PETERSBURG, Fla., Sept. 30 /PRNewswire/ -- Security Tag Systems, Inc. (NASDAQ: STAG) today announced that it has reached an agreement in principle to sell to Sensormatic Electronics Corporation (NYSE: SRM) approximately 70 percent of Security Tag which Sensormatic does not already own. Under this agreement, each outstanding share of Security Tag will be valued at $3.25 and will be exchanged through a merger for a fractional share of Sensormatic common stock which shall have a market value on the effective date of the merger equal to the average of the closing prices of such common stock on the New York Stock Exchange for the last five trading days preceding such effective date.
 Commenting on the transaction, Carter W. Clarke Jr., Security Tag's president and chief executive officer, said, "This merger has significant advantages for both parties. Sensormatic already owns approximately 30 percent of Security Tag and is our largest customer selling our products in Europe and elsewhere in the Eastern Hemisphere. Together with the increasing sales of current Sensormatic product lines, manufacturing efficiencies and anticipated economics of scale, the expanded sales of Security Tag products by Sensormatic's extensive worldwide sales and service organization should have a positive impact on Sensormatic's gross margins and profitability. This merger will allow Security Tag shareholders to participate in such growth of the world's leader in supplying electronic security systems to retailers."
 The merger is subject to certain conditions, including negotiations and execution of a definitive agreement, obtaining by Security Tag of a fairness opinion of the transaction, approval of Security Tag's shareholders and expiration of regulatory waiting periods. Sensormatic would have the right to terminate the transaction if the market value of its shares at the effective date of the merger is less than $24, and Security Tag would have the right to terminate the transaction if the market value of Sensormatic shares at such date is greater than $28.
 Security Tag Systems, Inc. develops, manufactures and markets electronic detector systems and loss prevention devices for retail, business and industrial markets.
 -0- 09/30/92
 CONTACT: Carter W. Clarke Jr. or William J. Bufe of Security Tag, 813-576-6399
 (STAG SRM) CO: SECURITY TAG SYSTEMS, INC.; SENSORMATIC ELECTRONICS
 CORP.


IN: CPR ST: FL -- NY013 -- X301 09/30/92
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Publication:PR Newswire
Date:Sep 30, 1992
Words:381
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