Lockheed Martin has gone ahead and acquired Savi Technology for an undisclosed sum but it is being speculated that the deal is for around $400 million. It seems to be an unusual move since defense contractors like Lockheed Martin are generally not interested in Silicon Valley companies. This deal has come at a time when there is a rising interest in the RFID technology.

According to Bob Stevens, Chairman, president and CEO, Lockheed Martin:

The acquisition of this innovative company is consistent with our strategy of making investments that significantly enhance the capabilities we can offer our customers.

Lockheed is planning to operate Savi as a wholly owned subsidiary under its integrated systems and solutions business based in Gaithersburg. With shippers and retailers replacing barcode with RFID tags for tracking cargo and inventory, Lockheed has sensed the bright future of RFID and has certainly made an intelligent move.

http://www.siliconvalley.com/mld/siliconvalley/news/local/14509527.htm