Identiv Acquires Analytics Company 3VR Security
Identiv says the acquisition will provide the company with a full range of technologies to deliver its vision for secure, pervasive yet frictionless premises security, situational awareness and business insights.
FREMONT, Calif. — Identiv, a global provider of physical security and secure identification, announces it has entered into a definitive agreement to acquire 3VR Security, a video technology and data analytics company.
Identiv says the acquisition will provide the company with a full range of technologies to deliver its vision for secure, pervasive yet frictionless premises security, situational awareness and business insights.
“We are advancing our global strength in the premises security industry, particularly in the attractive and fast-growing video segment,” says Jim Ousley, chairman of Identiv’s board of directors. “This accretive acquisition is part of our communicated plan to grow both organically and inorganically. Overall, we believe 3VR takes us closer to achieving our long-term model and becoming an at-scale growth company.”
3VR’s video intelligence solutions provide a single platform for real-time security and customer insights, enabling organizations to protect employees, customers and assets as well as improve store operations and shopping experiences, according to the company.
3VR’s open, pluggable platform leverages existing customer infrastructure and allows customers to expand their systems’ capabilities. 3VR serves customers in the financial services, retail, hospitality and other industries.
Identiv CEO Steven Humphreys says, “The acquisition allows us to address this demand by including video security as part of our overall premises security and technology platform. Since access control and video management go hand-in-hand, we believe 3VR is a great fit from a technology, strategic and financial perspective.”
Identiv says it expects 3VR to add between $10 million and $11 million to the company’s premises segment revenue in fiscal year 2018. Identiv also expects 3VR to contribute a mid-term target non-GAAP adjusted EBITDA margin of approximately 10% post synergies.
The acquisition is subject to customary closing conditions and is expected to close no later than February 20, 2018. The total consideration at close is expected to be $6.9 million, comprised of $1.6 million in cash; $2.0 million in subordinated promissory notes; and $3.3 million in shares of Identiv common stock.
In the event 3VR achieves certain significant shipment targets in 2018, Identiv would be obligated to issue additional earnout consideration in shares of Identiv common stock, and in the event that 3VR generates certain additional gross margin concerning a supply arrangement, Identiv would pay a portion of the additional margin as consideration, as further described in the definitive agreement.
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