Identiv (NASDAQ: INVE) has agreed to sell its physical security, access card and identity reader operations and assets to France-based Vitaprotech for a cash payment of $145 million.
Vitaprotech is an international group of companies specializing in the development and manufacturing of intrusion detection, access control and intelligent monitoring solutions.
Identiv will remain a publicly listed company on the Nasdaq stock exchange under the ticker symbol INVE. Proceeds from the sale will significantly strengthen Identiv’s financial position, generating capital to fund future organic and inorganic growth of its specialty IoT solutions business, according to an announcement.
Aligned with this strategic direction, Identiv announced the appointment of Kirsten Newquist as president, IoT Solutions, effective April 15. Newquist is a seasoned business leader with over 25 years’ experience in strategy, product management, business development and global sales and marketing. She will join Identiv after 17 years at Avery Dennison Corp. She was most recently global vice president, Avery Dennison Smartrac, and previously held other leadership roles including the vice president/general manager of Avery Dennison Medical.
“The Board has successfully concluded its strategic alternatives review with an outcome that we strongly believe is beneficial for all stakeholders,” said James Ousley, chairman of the board. “We said at the beginning of this process that we felt each of our business units would benefit from additional resources and management focus to achieve their full potential. We feel this transaction accomplishes both and provides excellent value creation paths for both businesses.”
Ousley said Identiv’s IoT solutions business opportunity “is vast, high growth, and high value-add where we believe we can establish market leadership.” He said the company expects to “refocus our growth strategy with a particular focus on healthcare-related segments and other high value-add opportunities for which we believe our technology can be both differentiated and transformational.”
As the healthcare industry and its providers advance their digital transformations, Identiv said its aim is to ensure that its technology and core competencies become an integral and critical component of their journey, delivering a compelling value proposition for patients, physicians, providers, and payors, and addressing the critical unmet needs in healthcare around data science, compliance, utilization, effectiveness, and efficiency.
“This is a game-changing transaction for the future of Identiv that we believe is an excellent outcome for our stockholders, employees, customers, and partners,” said Steven Humphreys, CEO of Identiv. “Our globally recognized security business naturally aligns with Vitaprotech’s strategy and vision for the market, creating a world leader in enterprise security. This strategic step is extremely positive for our IoT business, with the capital, leadership, team, and industry position to lead in our markets.”
The transaction is expected to close in the third quarter of 2024, subject to stockholder approval and other customary closing conditions. The transaction is also subject to review and approval by the Committee on Foreign Investment in the United States (CFIUS) and the Federal Trade Commission under the Hart-Scott-Rodino (HSR) Act. Upon closing, certain senior executives will join Vitaprotech, including Identiv CEO Steven Humphreys, at which time incoming President Kirsten Newquist will assume the role of CEO of Identiv.
Imperial Capital LLC is serving as financial advisor and Pillsbury Winthrop Shaw Pittman LLP is serving as legal counsel to Identiv. Craig-Hallum Capital Group delivered a fairness opinion to Identiv’s board of directors in connection with the transaction.
