Information technology company, TV2U International Limited today announced that it had inked an agreement with the privately-owned company of TV2U’s CEO, Talico Technologies Pte Limited, to acquire all of its intellectual property portfolio. The news pushed the shares to climb up by 14.286% to last trade at $0.008 on 29 January 2019.
In the announcement to Australian Securities Exchange, TV2U International Limited (ASX: TV2) told that Talico’s intellectual property which relates to the Over-The-Top (OTT) and Internet Protocol Television (IPTV) business segments had been acquired by TV2U’s wholly owned subsidiary, TV2U Singapore Pte Ltd, with immediate effect.
The deal entails no upfront payment of consideration in cash or otherwise. Rather, Talico will have the potential to receive performance shares over time but will not do so unless and until TV2U successfully generates a net profit, told the company. That means Talico will only receive consideration from the deal, as and when real value emerges for TV2U from the commercialization of the Intellectual Property.
With this arrangement, TV2U will have a boost in its existing IP portfolio which could now act as a growth catalyst to maximize vertical market opportunities across the smart home, transport, and education sectors. It will enable the company to expand its global footprint and scale revenues from existing and future OTT / IPTV deployments throughout 2019. However, the transaction remains subject to TV2U’s shareholders’ approval. The completion of the deal is also subject to TV2U to raising at least $2.5 million in additional funds to ramp up its sales and marketing initiatives during 2019, to pull-through revenue from its existing customers and new customers.
The company stated that CEO and Founder Nick Fitzgerald is extremely confident of the value and timeframe during which TV2U would be able to generate income from the newly acquired IP. TV2U’s Board reportedly sees strategic and commercial value in securing full ownership of the IP for all potential markets.
TV2U’s Chairman said “the acquisition of Talico’s IoT intellectual property will unlock synergies and create additional revenue opportunities in multiple new sectors, with new partners such as Alert Labs. The company plans to become a technology enabler of choice for IoT players, through TV2U’s ability to quickly, cost-effectively and seamlessly grow.”
According to the report, All IoT-focused projects, agreements, and commercial deployments currently being undertaken by Talico will be immediately transitioned to TV2U. The company expects that short to mid-term revenue streams will be created for TV2U as a result of these current opportunities that are estimated to commercialize in 2019.
TV2U is a cloud-based service provider of “White Labelled” Television and entertainment managed services. The intellectual property that the company has acquired from Talico includes leading-edge cloud-based technology solutions in digital analytics, video, and the Internet of Things (IoT). The company believes that beyond the streaming of on-demand, catch-up and live video, radio and music, the acquisition of Talico’s IoT intellectual property will create the ability for TV2U to provide a full suite of cloud-based solutions.
TV2 stock price plunged by 58.82% over the past 12 months.
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