UPM will become an indirect shareholder of Smartrac with a 10.6 percent economic interest through the company OEP Technologie BV. The closing of the deal is expected to take place during the first quarter of 2012. The transaction is still subject to regulatory approvals.Smartrac is registered in the Netherlands and is one of the global market leaders in high-quality RFID inlays for electronic passports and contactless credit cards as well as for RFID transponders for public transport applications.“UPM has been developing and investing in its RFID inlay business for a number of years. The business unit has evolved from a small venture to a sizeable business and is now recognized as the market leader in its field. Combining the business unit with a company with the industry’s widest RFID business portfolio, we give it new leverage to continue to develop successfully,” says Jussi Vanhanen, President, Engineered Materials, UPM.“Becoming part of the leading player in the RFID industry opens up totally new possibilities for us. I am convinced that this new setup will be a strong player in the growing RFID market place,” says Marcus Vaenerberg, Senior Vice President, UPM RFID.Smartrac is a leading developer, manufacturer, and supplier of RFID components for a broad range of applications in all current frequency standards. The company was founded in 2000, went public in July 2006, and trades as a stock corporation under Dutch law with its headquarters in Amsterdam. Smartrac currently employs some 3,300 employees and maintains a global research and development, production, and sales network.