On Track Innovations Ltd. a provider of cashless payment solutions based on contactless transactions and NFC, has closed the sale of its SmartID division to SuperCom Ltd, a provider of traditional and digital identity solutions.
SuperCom acquired the SmartID division’s on-going operations, including accounts and transfer of related employees, as well as intellectual property directly related to the SmartID business. OTI received USD10m in cash at the closing as the agreed closing payment. An additional payment of USD7.5m is expected to be received upon the completion of certain earn-out and business milestones, and an additional USD5m 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.”
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