The growth in demand for electronic government identification technology has prompted SuperCom to buy back SmartID from the contactless payments firm On Track Innovations seven years after it sold the division to OTI.

Rosh Pina, Israel-based OTI provides cashless payment solutions based on contactless, near-field communication technology. Herzliya, Israel-based SuperCom develops traditional and digital identity technology.

The purpose of the acquisition is to meet demand from governments for electronic identification, and the deal is in line with SuperCom's long-term plan to acquire synergistic companies, Arie Trabelsi, SuperCom's CEO, said in a statement. "With the SmartID division, we are adding a new suite of e-ID and e-Government capabilities, as well as experience in addressing national multi-ID needs," he said.

SuperCom's acquisition of SmartID includes all SmartID operations, key employees, regional subsidiaries and e-ID technologies and products. It also includes contracts, global customer base, bids and proposals. "Our new SmartID division strongly boosts our contract base and pipeline," Trabelsi said. "It also vastly expands the breadth of our e-ID capabilities globally and significantly increases our potential for revenue growth, while removing a tough competitor."

OTI has received a $10 million payment for the sale of its SmartID division, with potential further payments of $12.5 million over the next three years, the company said in a statement.

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