Smart label and physical AI firm Trackonomy Systems has bought fellow Californian company Identiv’s IoT business operating assets and its Thai subsidiary.

Identiv will sell its IoT assets, including its German R&D centre, and its Thai subsidiary, and will contribute $25m in cash, in exchange for $50m in Trackonomy preferred equity. Identiv’s cash contribution is intended to support integration efforts and fund incremental capital expenditures, including the scale-up of high-volume opportunities.

The two companies have also entered into a partnership framework agreement to work towards a definitive agreement to collaborate on software opportunities that leverage Trackonomy’s physical AI platform. Following the transaction close, Identiv’s strategy will focus on building a physical AI SaaS business synergistic with this platform, aiming to drive revenue growth and increase long-term stockholder value.

Trackonomy serves major global enterprises across healthcare, airline, logistics and manufacturing markets, as well as government. Its platform uses low-cost, cloud-connected sensors and AI to bring real-time visibility and intelligence to physical goods and assets. Privately held Trackonomy has raised over $250m and is backed by prominent venture capital firms and investors, including 8VC, Kleiner Perkins, Koch Disruptive Technologies and InQTel.

The sale is expected to close in Q3 or early Q4 fiscal year 2026, subject to customary closing conditions, including Identiv stockholder approval at a meeting of stockholders to be scheduled. Identiv intends to remain a publicly listed company on the Nasdaq stock exchange; however, the Identiv name and brand will be included in the sale of the IoT business operating assets, and the name of Identiv’s remaining public company will change after transaction close.

The two businesses have complementary products and capabilities, and Trackonomy’s acquisition of Identiv’s IoT assets is expected to create strategic and operational synergies. Trackonomy’s expertise in large-scale deployments is expected to strengthen execution across programmes from Identiv. In addition, Trackonomy’s acquisition of Identiv’s operations, including its Thailand manufacturing site, is intended to support Trackonomy’s growing demand for production capacity and drive cost efficiencies.

Following the sale, Identiv will transition into a SaaS and physical AI-focused company. Leveraging its core expertise in RFID and BLE technologies, Identiv intends to acquire compliance SaaS companies in highly regulated industries at attractive valuations using a combination of cash and stock. Through the expected definitive partnership, these acquired software assets will be integrated into Trackonomy’s physical AI data platform, enhancing the services with a physical AI data and infrastructure layer. This integration is intended to create immediate end-customer value and competitive differentiation, expand market reach, and contribute to revenue growth for Identiv’s acquired SaaS businesses.

Identiv is actively evaluating potential acquisition opportunities, with the objective of completing an acquisition shortly after the closing of the transaction with Trackonomy.

“I am incredibly proud that Trackonomy recognises our team’s achievements and specialised RFID and BLE capabilities,” said Kirsten Newquist, CEO of Identiv. “This transaction significantly transforms the company by streamlining and reducing execution risk for Identiv’s IoT business, while preserving financial upside potential for our stockholders through participation in Identiv’s go-forward strategy and ownership interest in Trackonomy.”

Upon close of the transaction, Erik Volkerink, CEO of Trackonomy (trackonomy.ai), will become an observer of Identiv’s board of directors, and James Ousley, Identiv (identiv.com) chairman, will become an observer of the Trackonomy board.