TV2U / TALICO’S IP ACQUISITION

A new thread to discuss all things Tv2/Talico related, starting with their latest announcement.

TV2U COMPLETES ACQUISITION OF TALICO’S INTELLECTUAL PROPERTY PORTFOLIO TV2U International Limited (ASX: TV2) (TV2U or Company) today announced it has signed a definitive agreement to acquire the intellectual property portfolio of Talico Technologies Pte Limited (Talico). The transaction is structured as TV2U acquiring Talico’s IoT and OTT intellectual property, as well as all IoT-focused commercial projects currently undertaken by Talico. This is set to have a positive material impact on TV2U’s business model. Talico’s commercial projects have advanced ahead of projected timelines and will require ongoing technical support, which TV2U will provide. As a result, TV2U’s business model will become split between IoT consultancy and IoT/OTT platform delivery as well as resell opportunities for the full technology stack now under its control. The Company is also in a position to become a technology enabler for IoT players, including its existing customer base. This acquisition will bolster TV2U’s incremental revenue generating capabilities without incurring additional R&D costs or overhead outlays. This material change is anticipated to bring new short-term revenues to the Company. Because of this, the $2.5 million capital raise outlined in the previous announcement pertaining to this acquisition (see 29 January 2019 update for more information) is no longer required. TV2U expects Talico commercial projects to generate revenues in a shorter timeframe, which will sustain the Company and its marketing and sales efforts without the need for that capital raise.Notwithstanding, certain articles of the definitive agreement may be subject to future shareholder approval. TV2U will update the market at that time. Talico projects build momentum: Since the last market update on the IP acquisition agreement, the partnership between Talico and Canadian company Alert Labs has expanded to include deployments in other regions in the future, with a new project launch expected in the UK market later this year. The UK expansion will see TV2U bring its IoT and data analytics technology to new verticals, including the insurance sector. Beyond those deployments, Talico is negotiating several new projects that are expected to form strategic partnerships for the Company to bridge its technology into other market sectors. TV2U has also entered into discussions with its existing customer base to roll out IoT-powered solutions as an add-on to their existing OTT deployments. These projects would take advantage of Talico’s IP to bring new revenues to the Company in the mid-term.