Identiv has finalized the sale of its physical security business with Vitaprotech.
Takeaway Points
- Identiv has finalized the sale of its physical security business with Vitaprotech.
- Identiv received a cash payment of approximately $144.2 million upon closing the transaction.
- On Aug 19, 2024, Identiv announced that the security business asset sale transaction received CFIUS clearance.
Identiv Finalizes Sale of Its Physical Security Business
Identiv, Inc., a global leader in RFID-enabled solutions for the Internet of Things (IoT), on Monday announced the successful conclusion of its previously announced asset sale transaction with Vitaprotech, a security solutions provider.
Identiv said it received a cash payment of approximately $144.2 million upon closing the transaction. Subject to further customary adjustments, Kirsten Newquist, formerly Identiv’s President, IoT Solutions, succeeded Steven Humphreys as the company’s CEO.
James Ousley, Chairman of the Board, said, “We are pleased to have brought this strategic transaction to a successful close. 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.”
Kirsten Newquist, CEO of Identiv, commented, “The closing of the asset sale transaction marks a pivotal milestone in Identiv’s history. 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.”
Imperial Capital LLC served as financial advisor and Pillsbury Winthrop Shaw Pittman LLP served as legal counsel to Identiv.
Identiv Security Business Asset Sale Transaction Receives CFIUS Clearance.
On Aug 19, 2024, Identiv, Inc., said that the Committee on Foreign Investment in the United States (“CFIUS”) has approved the company’s transaction to sell its physical security, access card, and identity reader operations and assets (the “Physical Security Business”) to Vitaprotech, a security solutions provider.
The company added that they submitted notice of the proposed transaction to the U.S. government on May 9, 2024. Pursuant to Section 721 of the Defense Production Act of 1950, as amended, CFIUS reviewed the transaction. On August 15, 2024, Identiv received notification of approval from the Department of Treasury, on behalf of the Committee on Foreign Investment in the United States. CFIUS determined that there were no unresolved national security concerns; therefore, action under Section 721 with respect to the transaction was concluded.
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.
