ORLANDO - VOXX International Corporation (NASDAQ:VOXX), a manufacturer and distributor of automotive and consumer technologies, has announced the formation of a joint venture, BioCenturion, LLC, with GalvanEyes Partners LLC. The new entity is expected to consolidate technology, research and development, sales, marketing, and business development efforts.
The joint venture will see both companies contributing selected assets and liabilities, with GalvanEyes handling the working capital needs for the next two years. The management structure of BioCenturion will have Allen Ibaugh at the helm, who has leadership experience from both EyeLock and GalvanEyes. The 50/50 venture grants GalvanEyes the role of managing member, while EyeLock retains certain veto rights over fundamental company decisions.
Financial arrangements within the joint venture include a preferential distribution of the first $45 million from a capital event, with approximately 77% allocated to EyeLock and 23% to GalvanEyes. EyeLock will maintain the liability of an approximate $70 million Note due to VOXX, which is not included in the joint venture transaction.
Concurrent with the joint venture, VOXX has undergone executive changes. Beat Kahli has stepped down as President of VOXX but will continue as co-Vice Chairman of the Board of Directors and take on the role of Chairman of the Board and CEO of BioCenturion. Loriann Shelton has succeeded Michael Stoehr as Chief Financial Officer of VOXX, with Stoehr staying on as Senior Vice President and Treasurer.
CEO of VOXX, Pat Lavelle, expressed optimism about the joint venture, citing the potential for VOXX to benefit from EyeLock's future successes without bearing its operating costs. He also noted the strategic shift to reallocate capital and generate savings. Beat Kahli emphasized the value he sees in EyeLock and his commitment to enhancing BioCenturion's position in the biometrics industry while continuing to forge strategic partnerships for VOXX.
This joint venture aligns with VOXX's long-term strategy to leverage its Biometrics technology segment, which has been recording losses since its inception. The collaboration with GalvanEyes is expected to create a more competitive force in the biometrics industry.
This information is based on a press release statement from VOXX International Corporation.
InvestingPro Insights
As VOXX International Corporation (NASDAQ:VOXX) solidifies its strategic direction through the formation of the BioCenturion joint venture, the company's financial metrics and market performance provide additional context for investors. According to the latest data from InvestingPro, VOXX has a market capitalization of approximately $179.88 million. Despite the recent executive changes and new ventures, the company's stock has experienced significant pressure, trading near its 52-week low and reflecting a price drop of about 31% over the last three months.
The InvestingPro Tips highlight that management's active share buyback program indicates confidence in the company's value proposition, which may be of interest to stakeholders considering the current low revenue valuation multiple. Additionally, VOXX's liquid assets surpassing short-term obligations suggests a degree of financial stability in the near term. However, analysts are projecting a sales decline for the current year and do not anticipate profitability within the same timeframe, which could be a cause for investor caution.
Investors seeking a deeper analysis of VOXX's financial health and market position can find additional InvestingPro Tips on https://www.investing.com/pro/VOXX. There are currently 9 more tips available, which could provide further insights into the company's performance and outlook. For those interested in accessing these valuable insights, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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