ViVOtech denies shutdown rumors, confirms restructuring plans
ViVOtech has denied a report that it will cease operations, but confirmed it plans to divest its Near Field Communications contactless reader business to focus on mobile commerce software development.
Late last week, NFC Times reported ViVOtech executives notified employees in branch offices that the firm would shut down, prompting Executive Chairman Mick Mullagh to issue an official statement proclaiming "ViVOtech's business fundamentals are strong and orders and contracts are building in both its reader and software businesses. Over the last six months the company has been executing a strategy to divest its reader business to a qualified buyer. This sale has moved slower than anticipated. ViVOtech has not ceased operations but is in the process of restructuring operations and has reduced its team to a smaller group with the goals of maintaining customer relationship and core contract work, and to address our supplier relationships and commitments."
Asked by NFC Times to elaborate on the statement, Mullagh declined to specify how many ViVOtech employees would remain after the restructuring, stating only that it would be a "much-reduced team." Sources indicate ViVOtech employed as many as 90 staffers prior to restructuring.
ViVOtech has raised $96 million in venture funding to date. Its ViVOpay contactless readers enable merchants to accept NFC-based payment programs from credit card issuers including Visa, MasterCard and American Express. The complementary ViVOapps suite encompasses location-based mobile marketing and promotions, loyalty programs and merchant gift cards optimized for new and existing NFC-enabled phones.
ViVOtech software and point-of-sale technologies also are integrated into mobile payment services including the Google (NASDAQ:GOOG) Wallet tap-and-pay application. In March 2012, the company announced a POS integration agreement with Isis, the forthcoming nationwide m-commerce network spearheaded by Verizon Wireless (NYSE:VZ), AT&T Mobility (NYSE:T) and T-Mobile USA.
- read this NFC Times article