NXT-ID Inc., a company focused on the growing mobile commerce market, has entered into an interest purchase agreement to acquire 100 percent of the membership interests of LogicMark LLC, a provider of unmonitored personal emergency response devices.
As per the terms of the agreement, NXT-ID Inc. will acquire LogicMark for $20 million in cash, with an anticipated closing date no later than June 30, 2016, subject to customary closing conditions, including a financing contingency. In addition, LogicMark members will be paid an earn out 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.
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. NXT-ID has a staff of 22 full-time professionals, three part-time professionals, and five contractors.
Gino Pereira, CEO of NXT-ID, said, “This accretive acquisition fits into our strategy of utilizing our core competencies to create diverse new opportunities for the company.”
Kevin O’Connor, Logicmark’s president, said, “We are excited to become a part of NXT-ID Inc. and leverage their technology and channel partnerships to expand our product portfolio and markets.”
NXT-ID Inc. 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, the company reported in a press release.
“We are utilizing additional resources and consultants to assist with LogicMark integration and management as well as retaining key LogicMark staff,” Pereira said. “We remain very focused on delivering the new WorldVentures DreamTrips smart cards which are currently in pre-production and will be ready for field testing in the coming weeks. We expect to make our first production deliveries to WorldVentures in July 2016.”
Logicmark was advised through the sale by Livingstone, an international mid-market M&A and debt advisory firm.