Innovaro, Inc. (NYSE Amex: INV), The Innovation Solutions Company, today announced it has entered into a non-binding letter of intent for the sale of its PharmaLicensing/Transfer, Global Licensing and Knowledge Express operating divisions to IPFlow International, LLC, which will focus on expanding the divisions and extending the business model for licensing partnerships and new market opportunities.
The price for the sale of the operating divisions and all related assets is $2 million, to be paid in installments over nine months. The letter of intent contemplates a commission agreement for client leads provided by Innovaro to IPFlow International and vice versa. Innovaro also expects that it will work closely with IPFlow International on potential innovation needs for IPFlow International’s clients.
Asa Lanum, Innovaro’s Chief Executive Officer, said, “We are pleased to have reached a tentative agreement for the sale of these operating divisions. We believe the sale will provide us with a strong partner and an expanding business model that we can introduce to our innovation clients. The sale will also allow us to focus our investments on sales and marketing to promote the growth of our service and software businesses. Further, we expect the sale will strengthen our balance sheet and provide us with the ability to extend our information mining capabilities to deliver additional solutions for our clients’ Big Data problems.”
Keith Witter, Founder of IPFlow International said, "We are excited with the opportunity to work with the employees in expanding these divisions to commercialize technologies around the world and work with Innovaro on their future plans."
Under the letter of intent, a definitive agreement must be reached before August 4, 2012 and remains subject to customary conditions, including negotiation of mutually agreeable terms, satisfactory completion of due diligence and the buyer securing financing. No assurances can be provided that a definitive agreement will be reached and that the sale will be completed.
About Innovaro, Inc.
Innovaro is The Innovation Solutions Company. The focus of our business is to help clients innovate and grow. Innovaro offers a comprehensive set of services and software to assure the success of any innovation project, regardless of the size or intent. The Company’s unique combination of consulting services provides innovation expertise, its new LaunchPad software product provides an integrated innovation environment, and its Intelligence and Insights services provide businesses the innovation support to drive success. The PharmaLicensing/Transfer, Global Licensing and Knowledge Express operating divisions are a component of the Company’s Intelligence and Insights services. For more information about Innovaro, please visit its website at www.innovaro.com.
Certain matters discussed in this press release are “forward-looking statements,” including statements regarding the completion of the sale of the operating divisions. These forward-looking statements can generally be identified as such because the context of the statement will include words such as “expects,” “should,” “believes,” “anticipates” or words of similar import. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements and these factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This press release is available on Innovaro’s website www.innovaro.com.