Identiv, Inc. (NASDAQ: INVE), a global digital security and identification leader in the Internet of Things (IoT), today announced 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.
Identiv 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.
Having met all regulatory requirements and received shareholder approval of the transaction, all regulatory and statutory conditions for closing have been satisfied. Both parties are now proceeding to close the transaction promptly. Based on the anticipated time needed to complete the actions required to close, Identiv and Vitaprotech expect to close the transaction within 30 days following CFIUS approval.
Upon closing of the transaction, Identiv will receive a cash payment of $145 million, subject to customary adjustments. The proceeds from the sale will significantly strengthen Identiv’s financial position, providing capital to pursue growth opportunities for its specialty IoT solutions business.
About Identiv
Identiv, Inc. is a global leader in digitally securing the physical world. Identiv's platform encompasses RFID and NFC, cybersecurity, and the full spectrum of physical access, video, and audio security. 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; the expected timing of the closing of the transaction; expected amount of proceeds from the transaction; the terms and conditions related to the transaction, including regulatory approvals; Identiv’s expectations with respect to the use of proceeds from the proposed transaction and the potential benefits thereof; Identiv’s beliefs regarding access to future capital; and Identiv’s expectations relating to the growth of its IoT business. 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: the risk that the other conditions to the closing of the transaction are not satisfied; the occurrence of any event, change or other circumstances that could give rise to the termination of the asset purchase agreement; the failure of the proposed transaction to close for any reason; 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; the timing of closing of the proposed transaction; risks that the proposed transaction disrupts current business, plans and operations of Identiv or its business prospects; diversion of management’s attention from Identiv’s ongoing business; the ability of Identiv to retain and hire key personnel; the effect of the change in management following the completion of the proposed transaction; competitive responses to the proposed transaction; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction; Identiv’s ability to continue the momentum in its business; Identiv’s ability to successfully execute its business strategy; 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.
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