Yahoo Finance Identiv (INVE) to Sell Part of Its Operations to Vitaprotech
Identiv INVE has entered into an agreement to sell its physical security, access card and identity reader operations and assets to Vitaprotech. The deal is anticipated to close in the third quarter of 2024.
The transaction needs approval from the Committee on Foreign Investment in the United States and the Federal Trade Commission under the Hart-Scott-Rodino Act.
Upon closing the deal, some senior executives of the company, including the CEO of INVE, Steven Humphreys, will join Vitaprotech. Kirsten Newquist will become the new CEO of Identiv following the completion of the deal.
Identiv, Inc. Price and Consensus
Identiv, Inc. price-consensus-chart | Identiv, Inc. Quote
Per the terms of the agreement, Identiv will receive $145 million in cash upon closing of the transaction, subject to customary adjustments. The company plans to use this money to concentrate on healthcare sectors and other valuable opportunities where its technologies can make a big difference.
The transaction will benefit INVE’s Healthcare and RFID business with additional funds, freeing up resources and expertise in its world-class IoT industry.
The company is also benefiting from securing successful design agreements. Its technical proficiency in intellectual property, expertise in the RFID segment and ongoing deal wins position it well in the security market.
Nevertheless, INVE is facing some headwinds from the postponement of orders in the library, packaging and supply chain sectors, causing delayed shipments.
Zacks Rank and Stocks to Consider
Currently, Identiv carries a Zacks Rank #4 (Sell). Shares of INVE have gained 9% in the past year.
Some better-ranked stocks from the broader technology sector are NVIDIA NVDA, Bill Holdings BILL and Bentley Systems BSY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s 2024 earnings per share has been revised upward by 4 cents to $23.84 in the past seven days. Shares of NVDA have skyrocketed 231% in the past year.
The Zacks Consensus Estimate for Bill Holdings’ 2024 earnings per share has been revised 32 cents northward to $2.44 in the past 60 days. Shares of BILL have lost 16.2% in the past year.
The Zacks Consensus Estimate for Bentley Systems' 2024 earnings per share has been revised upward by 3 cents to $1.02 in the past 60 days. Shares of BSY have gained 17.7% in the past year.
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