INVE Sets Aside About $30 Million to Acquire SaaS Companies
Key Facts
INVE Technologies expects to allocate about $30 million to acquire software-as-a-service companies, funded through a combination of cash and structured equity instruments, according to a presentation document filed with the U.S. Securities and Exchange Commission on October 21. The company places this allocation at the center of its shift toward acquiring software businesses after selling its IoT business assets. On November 9, INVE announced a definitive strategic partnership agreement with Trackonomy Systems to integrate the latter’s physical AI platform into the software companies it acquires. The plan thus links the purchase of established software with the addition of capabilities based on field data and devices. The company is targeting established software platforms operating in regulated markets, according to its announcement.
The partnership sets out a commercial framework covering preferential pricing, software licensing and revenue sharing. INVE will serve as a preferred distributor of Trackonomy solutions, while Trackonomy will provide infrastructure, install devices at customers’ sites and help migrate applications to its platform. The company said its acquisition strategy focuses on sectors including healthcare, pharmaceutical logistics, food safety, environmental monitoring and worker safety. In an earlier presentation, it described its goal as acquiring established compliance software companies with recurring revenue and strong customer relationships. It intends to add verifiable field data to those businesses, then expand through cross-selling and upselling, according to the presentation.
Third-quarter results, announced by the company on November 12, showed revenue of $3.1 million, compared with $5.0 million in the corresponding period of 2025. INVE attributed the decline to lower sales of radio-frequency identification product units and the sale of its IoT business during the quarter. It said current-period revenue covers operations through September 15, the date the IoT assets sale was completed, and therefore does not include the same period of activity recorded in the prior-year quarter. This difference in period coverage limits direct comparison between the quarters’ year-over-year revenue. Following the sale, the company said it is not currently generating commercial revenue and therefore did not provide financial guidance.
On a GAAP basis, the company recorded net income of $588,000, or $0.02 per basic and diluted share, compared with a net loss of $3.451 million, or $0.15 per share, a year earlier. The company attributed the shift to profitability mainly to a gain on the sale of assets and a gain from the dissolution of a foreign subsidiary. Adjusted EBITDA, a non-GAAP measure, remained a loss of $3.0 million for the quarter, but narrowed from $3.6 million a year earlier. INVE said the improvement in this measure resulted mainly from disciplined management of operating expenses. The GAAP result therefore reflects the impact of specific transactions and events, while the adjusted measure remained in negative territory.
The GAAP gross margin rose to 18.3% from 10.7% a year earlier, while the non-GAAP margin climbed to 31.6% from 19.1%. The company attributed the improvement to cost savings and production efficiencies at its Thailand facility, as well as the absence of inventory obsolescence charges recorded in the year-earlier period. On the balance sheet, cash and cash equivalents totaled $86.789 million on September 30, down from $128.609 million on December 31, 2025, while equity investments stood at $50.2 million. In its August presentation, the company had estimated that $40 to $45 million in cash would remain after returning up to $40 million to shareholders. It estimated then that operating expenses, integration and corporate costs would total about $15 million over three years.
The company previously appointed James Greenwell interim chief executive effective September 21, following the completion on September 15 of the sale of its IoT business assets to Trackonomy and its name change from Identiv to INVE Technologies. In October, it announced the launch of an amended Dutch auction tender offer to repurchase up to $20 million of shares. These steps place the company in a transition from the IoT business it sold toward building an acquisition- and partnership-led strategy. The company cautioned, however, that execution of its plan depends on its ability to acquire one or more enterprise software companies and on the success of its partnership with Trackonomy. Management announced a call to discuss third-quarter results and strategy on November 12, 2026, at 5:00 p.m. Eastern Time.