FREMONT, Calif. - Identiv, Inc. (NASDAQ: NASDAQ:INVE), a leader in digital security and identification in the Internet of Things (IoT), has announced the sale of its physical security, access card, and identity reader operations to Vitaprotech, a European security solutions provider. The $145 million cash transaction is set to bolster Identiv's financial standing and fund growth in its specialty IoT solutions business. The sale is expected to close in Q3 FY 2024, pending stockholder and regulatory approvals.
Concurrent with the sale, Identiv has appointed Kirsten Newquist as President of its IoT Solutions division, effective April 15, 2024. Newquist brings over 25 years of experience, including her recent role as Global Vice President at Avery Dennison (NYSE:AVY) Smartrac. The Board of Directors believes this appointment and the transaction will enhance value creation for both business units.
Identiv's CEO, Steven Humphreys, stated that the alignment of Identiv’s security business with Vitaprotech's vision will create a global leader in enterprise security. Post-transaction, Humphreys will join Vitaprotech, and Newquist will assume the CEO role at Identiv.
The strategic move aims to refocus Identiv's growth strategy, particularly in healthcare-related segments, leveraging its technology to address critical needs in data science, compliance, and efficiency in the healthcare sector.
Identiv's largest stockholder, Bleichroeder LP, expressed confidence in the Board's decision, viewing it as an opportunity to establish Identiv as a leading company in specialty IoT solutions, especially in healthcare.
The transaction is subject to reviews by the Committee on Foreign Investment in the United States (CFIUS) and the Federal Trade Commission under the Hart-Scott-Rodino (HSR) Act. Identiv will remain listed on the Nasdaq stock exchange under the ticker symbol INVE.
Identiv management held a conference call today to discuss the transaction and post-closing business strategy. The replay will be available until April 17, 2024.
This report is based on a press release statement.
InvestingPro Insights
As Identiv, Inc. (NASDAQ: INVE) pivots towards growth in its IoT solutions business, the company's latest financial metrics provide a deeper understanding of its current position. With a market capitalization of $197.15 million, Identiv is poised to leverage its assets and market performance to drive its specialized IoT ventures, particularly in the healthcare sector.
InvestingPro data indicates a notable 8.75% return over the last week, signaling strong market confidence following the announcement of the sale to Vitaprotech. This is coupled with a 37.18% price total return over the past year, underscoring the potential that investors see in Identiv's strategic refocus. Additionally, the company's liquid assets currently exceed its short-term obligations, as per InvestingPro Tips, providing a stable financial foundation for its operations post-transaction.
Although Identiv has not been profitable over the last twelve months, analysts predict the company will turn a profit this year, according to another InvestingPro Tip. This anticipated shift to profitability could further enhance investor sentiment and support Identiv's value creation strategy in the IoT solutions space.
For investors looking to delve deeper into Identiv's financials and future outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/INVE. Use the coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to a comprehensive suite of investment tools and data.
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