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.