Leaping the fence ...

By LIBBY MIDDLEBROOK

The country's largest electric fence manufacturer, Gallagher Group, expects the size of its access control security business, Cardax, to overtake its 60-year-old electric fencing division within three years.

The business was acquired by Gallagher seven months ago and chief executive Bill Gallagher said strong demand from the United Kingdom, Europe, Australia and New Zealand for its software would more than double the size of Cardax by 2003.

"Without a doubt, the security side of our business will pass over the agricultural side in a very short time. Agricultural is still growing but nothing like in the technology security sector."

Gallagher acquired Cardax through the purchase of PEC New Zealand last June, along with PEC Fuel Pumps and PEC International, a fuel station software business that Gallagher sold on to Advantage Group for $15 million. The purchase price was not disclosed.

Mr Gallagher said Cardax, which employs 140, complemented the group's core business because it could provide internal security systems while the electric fencing division supplied external security solutions. Cardax's clients include Telecom, Beijing Airport and the London Underground.

The company expects the business to grow further into European and American markets during the next 12 months.

Meanwhile, Mr Gallagher said Cardax and PEC Fuel Pumps were expected to generate a combined turnover of about $30 million at the close of the 1999-2000 financial year in June. Gallagher Group, which is relocating Cardax from its Marton base to Hamilton, has an estimated turnover of $100 million.

The relocated business will create more than 50 jobs in Hamilton in the short term while 40 staff will be transferred from other administration and research and development sites around the North Island to Hamilton. Cardax hardware will be manufactured in Hamilton.