oti Divests Intercard System Electronics GmbH
Sale of German Subsidiary Completes oti's Refocus on NFC and Cashless
ROSH PINA, ISRAEL -- (Marketwired) -- 03/03/14 -- On Track
Innovations Ltd. (oti) (NASDAQ: OTIV), a global leader in cashless
payment solutions based on contactless transactions and near-field
communication (NFC), has sold its wholly owned German subsidiary,
Intercard System Electronics GmbH, to a private party. Intercard
manufactures electronic assemblies and devices, including oti's NFC
readers and other non-oti related products.
"In 2013, we made the strategic decision to refocus our efforts in
the fast growing market for cashless payment solutions and to divest
businesses that are not within this business scope, such as this
manufacturing facility," said Ofer Tziperman, CEO of oti. "This
divestiture reduces unnecessary overhead, including a headcount
reduction of 61 local employees, while allowing us to continue
subcontracting the good services of Intercard under favorable terms.
However, more importantly, we can now better focus on building our
sales momentum and leveraging our growing industry adoption as a
technology leader in the fast growing, multi-billion dollar NFC and
cashless payments market."
The sale of Intercard includes an upfront payment of EUR 700,000 to
oti and then future debt payments of certain amounts, as well as
preferred pricing for Intercard services for the ongoing
manufacturing of oti readers.
On Track Innovations Ltd. (oti) is a leader in
contactless and NFC applications based on its extensive patent and IP
portfolio. oti's field-proven innovations have been deployed around
the world to address NFC and other cashless payment solutions,
petroleum payment and management, cashless parking fee collection
systems and mass transit ticketing. oti markets and supports its
solutions through a global network of regional offices and alliances.
For more information, visit www.otiglobal.com.
This press release may contain
forward-looking statements within the meaning of the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995
and other Federal securities laws. Because such statements deal with
future events and are based on oti's current expectations, they are
subject to various risks and uncertainties and actual results,
performance or achievements of oti could differ materially from those
described in or implied by the statements in this press release. For
example, forward-looking statements include statements regarding
oti's success in actually reducing its costs and/or its operation
expenses following the divestiture of Intercard and/or improving its
manufacturing processes or successfully executing oti's growth plans.
The forward-looking statements contained in this press release are
subject to other risks and uncertainties, including those discussed
in the "Risk Factors" section and elsewhere in oti's annual report on
Form 20-F for the year ended December 31, 2012 and in subsequent
filings with the Securities and Exchange Commission. Except as
otherwise required by law, OTI disclaims any intention or obligation
to update or revise any forward-looking statements, which speak only
as of the date hereof, whether as a result of new information, future
events or circumstances or otherwise.
Chief Sales and Marketing Officer
Scott Liolios or Matt Glover
Liolios Group, Inc.
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