Digital Ally, which makes advanced video surveillance products for law enforcement, homeland security and commercial applications, said it signed a letter of intent to acquire the SightDeck intellectual property (IP) from iMatte, Inc.
“The combined technologies will form the basis for a new business strategy for Digital Ally as it targets new markets, such as medical, education, legal, and psycho-therapy,” said Digital Ally.
“These markets have not fully utilized the power of augmented reality on a real-time basis, which improves the efficient use of premium and scarce resources, such as doctors, lawyers, specialists and consultants.”
Under the proposed terms, Digital Ally said it would pay 6% of revenues, with a minimum of $1 million, generated from the licensing and sale of products created from the SightDeck intellectual property platform over the three-year period after closing.
Digital Ally said the SightDeck IP was developed to produce theatrical-quality special effects “where real-time integration of graphics and images are needed” and the platform was currently installed in several universities and hospitals.
Digital Ally CEO Stanton Ross said: “We have a clear roadmap to commercialize this new technology given the extensive market research we have completed, although we have much engineering development and integration work to accomplish after closing this transaction.
“We are excited about the SightDeck IP platform and the many new market channels for which we expect to adapt new products and service offerings.
“This product will help Digital Ally develop new recurring service revenue streams, which is a major initiative to restore its profitability and provide more consistent operating results.”
Key members of iMatte responsible for SightDeck’s development will join Digital Ally’s research and development team.
Closing of the transaction is subject to the successful completion of due diligence and negotiation of the definitive agreement.
The parties expect the purchase to be completed in the third quarter 2017.