The transition marks a sharp strategic shift for the Nasdaq-listed firm, which intends to rebrand and focus exclusively on physical artificial intelligence—systems designed to help machines perceive and engage with the physical world. By partnering with Trackonomy, Identiv aims to integrate its new SaaS offerings into a broader physical AI ecosystem. The deal, expected to close by early fourth quarter, has already secured unanimous board approval and the backing of the company’s largest shareholder.

Following the divestiture, Identiv plans to aggressively pursue acquisitions in the compliance SaaS sector. To fund this transition and signal confidence, the board raised its stock buyback authorization by $32 million, bringing the total to $40 million. The leadership structure will also undergo a transformation, with board observers being exchanged between the two companies and new management hires expected to bring specialized experience in software-led mergers and acquisitions.