OTI Receives $10 Million Payment From Sale of SmartID Division
December 26 2013 - 8:11AM
Marketwired
OTI Receives $10 Million Payment From Sale of SmartID Division
Divestiture Increases Company Emphasis on Core Contactless
Technology and NFC Solutions
ROSH PINA, ISRAEL--(Marketwired - Dec 26, 2013) - On Track
Innovations Ltd. (OTI) (NASDAQ: OTIV), a global leader in cashless
payment solutions based on contactless transactions and near-field
communication (NFC), has closed the sale of its SmartID division to
SuperCom Ltd. (NASDAQ: SPCB), a global provider of traditional and
digital identity solutions.
SuperCom acquired the SmartID division's ongoing operations,
including accounts and transfer of related employees, as well as
intellectual property directly related to the SmartID business. OTI
received $10 million in cash at the closing as the agreed closing
payment. An additional payment of $7.5 million is expected to be
received upon the completion of certain earn-out and business
milestones, and an additional $5 million subject to
performance-based milestones over three years.
"It was a long process and we are appreciative to the dedicated
teams of both companies who made it happen," said Ofer Tziperman,
CEO of OTI. "I am especially proud of the SmartID team and wish
them a great success with SuperCom.
"The divestiture marks a major step in executing on our
strategic plan of focusing on our core business of providing
cashless payment technology and solutions. With the additional cash
now on our balance sheet, we can more effectively capitalize on the
fast growing, multi-billion dollar NFC and cashless payments
markets. We plan to leverage our bolstered balance sheet and
significant competitive advantages to drive OTI's long-term growth
and profitability."
About OTI On Track Innovations Ltd. (OTI) is a leader in
contactless and NFC applications based on its extensive patent and
IP portfolio. OTI's field-proven innovations have been deployed
around the world to address NFC and other cashless payment
solutions, petroleum payment and management, cashless parking fee
collection systems and mass transit ticketing. OTI markets and
supports its solutions through a global network of regional offices
and alliances. For more information, visit www.otiglobal.com.
Forward-Looking Statements This press release may contain
forward-looking statements within the meaning of the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995
and other Federal securities laws. Because such statements deal
with future events and are based on OTI's current expectations,
they are subject to various risks and uncertainties and actual
results, performance or achievements of OTI could differ materially
from those described in or implied by the statements in this press
release. For example, forward-looking statements include statements
regarding receipt of future consideration from the sale of OTI's
SmartID Division, OTI's long term growth and profitability, further
penetration of the NFC markets and execution of OTI's growth plans.
The forward-looking statements contained in this press release are
subject to other risks and uncertainties, including those discussed
in the "Risk Factors" section and elsewhere in OTI's annual report
on Form 20-F for the year ended December 31, 2012 and in subsequent
filings with the Securities and Exchange Commission. Except as
otherwise required by law, OTI disclaims any intention or
obligation to update or revise any forward-looking statements,
which speak only as of the date hereof, whether as a result of new
information, future events or circumstances or otherwise.
Investor Contact: Scott Liolios or Matt Glover Liolios Group,
Inc. 949 574 3860 Email Contact
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