(Updates to add latest stock movement in lead and headline and adds analysts downgrades in paragraph 2)
Identiv (INVE) shares fall 31% in Thursday trading after it said Wednesday it agreed to sell its IoT business operating assets and its Thai subsidiary to Trackonomy Systems in exchange for $50 million of Trackonomy preferred equity and a $25 million cash contribution.
Lake Street and Craig Hallum downgraded the stock to buy from hold.
Under the definitive agreement, Identiv will sell its IoT assets, including its German research and development center and its Thai subsidiary. The cash contribution is intended to support integration efforts and capital expenditures, the company said.
Identiv and Trackonomy also entered into a partnership framework agreement to collaborate on software opportunities leveraging Trackonomy's physical AI platform.
The sale is expected to close in Q3 or early Q4, subject to customary closing conditions, including Identiv stockholder approval.
Identiv said it plans to remain publicly listed under the ticker symbol "INVE". However, the Identiv name and brand are included in the sale, and the company will adopt a new name after the transaction closes.
Price: $2.44, Change: $-1.25, Percent Change: -33.88%