Vitaprotech acquisition of Identiv’s biometrics assets gets final approval

California-based Identiv’s sale of its physical security business to France-based Vitaprotech has been approved by regulators, and the deal is expected to close within 30 days.

The $145 million cash deal sets up a pivot by Identiv to focus on its IoT security and digital identity platform with RFID and NFC capabilities. Identiv says the cash infusion strengthens its financial position and gives it the capital it needs to fuel growth in the IoT market. The deal also gives Vitaprotech the physical security, access card and biometric identity reader portfolio developed by Identiv.

The Committee on Foreign Investment in the United States (CFIUS) has completed its review, after it was approved by Identiv stockholders on June 28.

“Our products together represent the industry’s most complete platform, spanning access control, perimeter security, video surveillance, analytics, credentials, physical and logical access readers, monitoring and physical security management software (PSIM’s),” said Identiv CEO Steven Humphreys, who is joining Vitaprotech as deputy CEO, at the time of the agreement. “With deep strength in both Europe and the Middle East and across North America, we’re one of the most truly global security companies. Together we secure some of the most critical locations worldwide, with a platform built on the highest levels of cyber and physical security, scalable from small shops to global enterprises and government organizations.”

Q2 earnings reflect new IoT challenge

GAAP earnings for Identiv, which do not include the divested biometric business, generated $6.7 million in revenue in the second quarter of fiscal 2024. The step decline from $11.5 million led to a GAAP net loss of $6.9 million, or $0.31 per basic and diluted share.

The total revenue booked by Identiv, including from the assets it has sold to Vitaprotech, was $24.3 million, compared to $29.6 million in Q2 2023.

Identiv’s production facility in Thailand earned ISO 9001:2015 and ISO 14001:2015 certifications during the quarter, according to the earnings announcement.

Article Topics

acquisitions  |  biometrics  |  financial results  |  Identiv  |  IoT  |  stocks  |  Vitaprotech