NXT-ID (NXTD +12.8%) and Fit Pay announced that the companies have entered into Letter of Intent to combine their businesses in a deal that includes stock and cash consideration. NXT-ID will not be raising additional capital to complete this transaction.
"This potential transaction with Fit Pay would not only add a critical component to our payment and authentication products, but also a platform which will enable a whole new suite of offerings including payments, credential management, and secure authentication services," said Gino Pereira, Chief Executive Officer of NXT-ID, Inc. "Fit Pay's leadership team has over 50 years of experience in the payment space. The completion of this transaction would provide an important addition to our business model, increasing our opportunities with existing products and allowing us to rapidly expand in digital payments and the Internet of Things (IoT), both of which are part of our strategic plan."
The transaction remains subject to completion of due diligence reviews, customary definitive documentation and Nasdaq review. The companies expect to complete the transaction early in the second quarter of 2017.
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