Identive will sell its Multicard U.S. business and assets related to its Tagtrail platform
Identive announces that its Board of Directors has approved the sale of non-core businesses as part of a plan to simplify the company’s organisational architecture and enhance its focus on high-growth products and markets. Within the next few months, the company expects to execute agreements to sell its Multicard U.S. business as well as the assets related to its Tagtrail platform.
“Simplification, focus and growth. Those are the key principles guiding the company over the next few months as we look to create long-term value for our stakeholders,” said Jason Hart, chief executive officer of Identive. “As discussed on our recent earnings call, we are implementing dramatic changes to philosophically and structurally transform Identive into a single, unified company focused on providing trusted ID products for high-growth markets. Part of our right-sizing of the business is to strip out activities that are not core to this vision. A simpler and more focused organisation will allow us to make meaningful reductions in our operating expense base and to enhance investment in our target growth markets such as cloud-based identity management.”
For financial reporting purposes, beginning in the current fourth fiscal quarter of 2013, the company intends to classify the assets related to its Multicard U.S. business group and its Tagtrail mobile services platform as discontinued operations, and expects to report income from discontinued operations and a separate expected disposal loss from the write-down to fair value of the net assets held for sale. At this time, the company is unable to make a determination of an estimate or range of estimates with respect to the charges associated with its decision to dispose of these assets.