Selling security business
Nio Inc. has entered into an agreement to sell its
security business to a subsidiary of the US security
company IVR Controls. The sales price is royalty
based, with a royalty payment of USD 250 per units
sold of the current versions of Nio's core products
plus a USD 100,000 initial payment.
During 2012, Nio has been transformed from a security
company into being 100 percent focused on its online
businesses; internet auctions and online gambling.
The Internet Auctions sites are showing steady
growth. The gaming website Panda365.com was launched
in the the fourth quarter of 2012 and the Company is
satisfied with the commercial launch of the website.
The Company has had satisfying results on tests of
turning Internet Auctions customers into gambling
customers, resulting in customer growth according to
plan. The Company's expectations for customer growth
and earnings for 2013 stands.
The security business has not been profitable in
recent years, and generated less than two percent of
Nio's revenues. A disposal of the business unit is in
line with the Company's transformation process, and
will avoid further negative effects on earnings going
forward. The transaction will be effective from
January 1, 2013.
Included in the sale are all IPR and trade names
related to the security products. The agreement is
subject to a final due diligence and board approval.
The transaction will affect Nio's 2012 financial
statements negatively, including a full write down of
security inventory with up to USD 1 million. Nio will
keep the parts and components stored at its German
manufacturer, and in 2013 and onwards, the sale of
these parts/components and the royalty payments is
expected to result in an income to Nio.
For more information, please contact: Brian Palm
Svaneeng Mertz, CEO, Tel: +45 2390 3300.
About Nio Inc.
Nio Inc. has two primary business areas; internet
auctions and online gaming. Nio owns and operates
Internet auction sites which offers an unique and
entertaining way to shop on the Internet, and the
gaming site Panda365.com. Nio Inc. is a US company
with more than 150 employees with its headquarter in
Oslo, Norway. Nio is listed on the Oslo Stock
Exchange (ticker: NIO).