Rapiscan Systems Announces Update to Turnkey Screening Services Agreement in Mexico
February 29, 2012 Hawthorne, CA
Updates to contract increase value to $900 million
Rapiscan Systems, a global provider of security inspection solutions, today announced that Mexico’s tax and customs authority, Servicio de Administración Tributaria (SAT) has exercised contractual options under the six-year turnkey screening services agreement with the company. The total value of the SAT agreement is currently approximately $900 million, which is at the upper end of the program’s original maximum scope. Rapiscan had previously announced the minimum obligated value of $400 million for this program, the duration of which is six years.
“We are gratified by SAT’s confidence in us for this important program, and we look forward to moving rapidly to the implementation phase,” said Deepak Chopra, CEO of OSI Systems, Rapiscan’s parent company. “We are delighted to work with SAT to support this critical program. Our extensive experience in implementing leading edge inspection solutions and our operations expertise make us highly qualified to manage comprehensive programs with rigorous requirements. We stand to benefit from adding significant recurring revenues as we will manage the daily operations under this agreement.”
Under the program, Rapiscan Systems will provide complete operations of inspection sites utilizing x-ray screening technology. Rapiscan will incorporate staffing, systems integration, data management, and maintenance support at these sites networked throughout Mexico, including ports of entry as well as inland checkpoints and airports, enhancing the Mexican government authorities’ capability to interdict contraband, undeclared, and illegal materials.
Ajay Mehra, President of Rapiscan Systems, stated, “We are gratified by SAT’s confidence in us for this important program, and we look forward to moving rapidly to the implementation phase.”
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About Rapiscan Systems, Inc.
Rapiscan Systems, Inc., a division of OSI Systems, Inc., is a leading global supplier of security inspection solutions utilizing X-ray and gamma-ray imaging and advanced threat identification techniques such as neutron and diffraction analysis. The company's products are sold into four market segments: Baggage and Parcel Inspection, Cargo and Vehicle Inspection, Hold Baggage Screening and People Screening. The company has an installed base globally of more than 70,000 security and inspection systems. The Rapiscan Systems product line is manufactured at four locations and supported by a global support service network. As the world's leading security screening provider, Rapiscan Systems provides state of the art products, solutions and services that meet our customers' most demanding threat detection needs --- while improving their operational efficiency.