Identiv Announces Asset Purchase Agreement with Vitaprotech for $145 Million

Identiv, Inc. has entered into a definitive asset purchase agreement to sell its physical security, access card, and identity reader operations and assets to Vitaprotech, a security solutions provider.

The 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.

Under the terms of the agreement, Identiv will receive a cash payment of $145 million upon closing of the transaction, subject to customary adjustments. Identiv, Inc. will remain a publicly listed company on the Nasdaq stock exchange under the ticker symbol “INVE”.

Identiv also announced the appointment of Kirsten Newquist as president, IoT Solutions, effective April 15, 2024. Newquist has more than 25 years’ experience in strategy, product management, business development, and global sales and marketing. She will join Identiv after 17 years at Avery Dennison Corporation. She was most recently global VP, Avery Dennison Smartrac, and previously held other leadership roles including the VP/GM 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,” added Ousley. “We feel this transaction accomplishes both and provides excellent value creation paths for both businesses.

“Identiv’s IoT solutions business opportunity is vast, high growth, and high value-add where we believe we can establish market leadership,” he continued. “We expect 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.

“We are thrilled that Kirsten will be joining our executive leadership team,” added Ousley. “Her prior experience working with healthcare companies and other value-add industries to deploy innovative and impactful IoT solutions is ideal for leading Identiv’s post-transaction organic and inorganic growth strategies.”

Michael Kellen and Andrew Gundlach, co-CEOs of Bleichroeder LP, Identiv’s largest stockholder, said, “We believe that Identiv’s board has taken the right strategic step to maximize the company’s opportunity to build the leading company in specialty IoT solutions with a particular focus in healthcare.  We view this as an opportunity to generate substantial value for stockholders, combining the existing strengths of the current RFID business with world-class IoT industry and healthcare-focused leadership and the capital to actualize their vision.”

“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 Humphreys, at which time Newquist will assume the role of CEO of Identiv.