SANTA ANA, Calif.--(BUSINESS WIRE)--Identiv, Inc. (NASDAQ: INVE), a global leader in RFID-enabled solutions for the Internet of Things (IoT), today announced the successful conclusion of its previously announced asset sale transaction with Vitaprotech, a security solutions provider. Upon closing the transaction, Identiv received a cash payment of approximately $144.2 million, subject to further customary adjustments, and Kirsten Newquist, formerly Identiv’s President, IoT Solutions, succeeded Steven Humphreys as the Company’s CEO.
“We are pleased to have brought this strategic transaction to a successful close,” said James Ousley, Chairman of the Board. “The proceeds significantly enhance our financial position and provide us with capital to judiciously invest in the future growth of our IoT solutions business.”
Ousley added, “The Board would also like to extend its gratitude to Steve Humphreys for his many years of exceptional leadership at Identiv and his invaluable contributions to the Board. We wish him and the Physical Security team continued success in their future endeavors.”
The closing of the asset sale transaction marks a pivotal milestone in Identiv’s history. Kirsten Newquist, CEO of Identiv, remarked, “I am excited to lead Identiv through its next phase as the company transitions into a dedicated IoT solutions provider. We are focused on executing the three pillars of our growth strategy, including the accelerated transition of RFID production to our Thailand facility and developing key RFID-enabled IoT applications for high-value segments such as healthcare, smart packaging, smart home devices, and specialty retail. We are committed to maximizing this exceptional opportunity to benefit our investors, customers, partners, and employees.”
As announced on August 8, 2024, management continues to expect fiscal Q3 2024 revenue from continuing operations to be in the range of $5.8 million to $6.1 million. Management will not be providing an update to its previous outlook for total revenue from continuing operations and revenue included in discontinued operations since the asset sale transaction closed prior to the end of fiscal Q3 2024.
Imperial Capital LLC served as financial advisor and Pillsbury Winthrop Shaw Pittman LLP served as legal counsel to Identiv.
About Identiv
Identiv’s full-circle RFID-enabled IoT solutions enable digital identities to physical objects, enhancing global connectivity for businesses, people, and the planet. Built into over 1.5 billion applications worldwide, its IoT solutions are suitable for a multitude of potential applications across a wide range of end markets, including healthcare, consumer electronics, luxury goods, smart packaging, logistics and warehouse tracking. For more information, visit identiv.com.
Note Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations as well as the current beliefs and assumptions of management of Identiv and can be identified by words such as “anticipate,” “believe,” “continue,” “plan,” “will,” “intend,” “expect,” “outlook,” and similar references to the future. Any statement that is not a historical fact is a forward-looking statement, including statements regarding: Identiv’s strategy, opportunities, focus and goals; expected amount of proceeds from the transaction; Identiv’s expectations with respect to the use of proceeds from the transaction and the potential benefits thereof; Identiv’s beliefs regarding access to future capital; Identiv’s expectations relating to the growth of its IoT business; and Identiv’s expectations regarding future operating and financial outlook and performance, including 2024 third quarter guidance and outlook. Forward-looking statements are only predictions and are subject to a number of risks and uncertainties, many of which are outside Identiv’s control, which could cause actual results to differ materially and adversely from those expressed in any forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: potential litigation relating to the transaction and the effects of any outcome related thereto; any purchase price adjustments to the amount of proceeds from the transaction; risks that the transaction disrupts current business, plans and operations of Identiv or its business prospects; the ability of Identiv to retain and hire key personnel; the effect of the change in management following the completion of the transaction; competitive responses to the transaction; potential adverse reactions or changes to business relationships resulting from the completion of the transaction; Identiv’s ability to continue the momentum in its business; Identiv’s ability to successfully execute its business and growth strategy, including its ability to accelerate the transition of RFID production to its Thailand facility and develop key RFID-enabled IoT applications for high-value segments; Identiv’s ability to maximize potential benefits to stakeholders; Identiv’s ability to capitalize on trends in its business; Identiv’s ability to satisfy customer demand and expectations; the level and timing of customer orders and changes/cancellations; the loss of customers, suppliers or partners; the success of Identiv’s products and strategic partnerships; industry trends and seasonality; the impact of macroeconomic conditions and customer demand, inflation and increases in prices; and the other factors discussed in its periodic reports, including its Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 and subsequent reports filed with the Securities and Exchange Commission. All forward-looking statements are based on information available to Identiv on the date hereof, and Identiv assumes no obligation to update such statements.
