NXT-ID to Acquire PERS Provider LogicMark for $20M
NXT-ID will look to install biometric technology on LogicMark’s existing devices, as well as improve market awareness of the company.
MELBOURNE, Fla. – Biometric sensor developer NXT-ID (NASDAQ: NXTD) has acquired LogicMark, a provider of unmonitored personal emergency response devices (PERS) for $20 million in cash. The transaction, subject to customary closing conditions, including a financing contingency, is expected to close by the end of June.
In addition, LogicMark members will be compensated based on achieving certain performance goals within the next 18 months. The financing for the acquisition will be a combination of senior secured debt and equity, according to a press release.
The audited financial statements for LogicMark for the year ended December 31, 2015, showed revenues of $11.1 million and pre-tax net income of $3.1 million. The Louisville, Ky.-based company employs 22 full-time staffers.
NXT-ID provides a range of technologies for biometric access control, mobile commerce and Department of Defense contracts. The company will utilize additional resources and consultants to assist with integrating the LogicMark business and management, as well as retain key LogicMark staff, says NXT-ID CEO Gino Pereira.
“This accretive acquisition fits into our strategy of utilizing our core competencies to create diverse new opportunities for the company,” he says.
NXT-ID plans to integrate its voice biometric technology as well as fall detection sensors and miniaturization skills to future versions of LogicMark products. In addition, the company believes it can potentially enhance the retail presence of LogicMark products.
Logicmark was advised through the sale by Livingstone, an international mid-market M&A and debt advisory firm.
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