WISeKey Announces the Divestiture of arago

Rhea-AI Summary

WISeKey International Holding has announced the divestiture of its 51% stake in arago GmbH to OGARA GmbH, a German consortium led by arago's founder. This transfer, part of a previously signed agreement, transfers full operational control to OGARA while allowing WISeKey to focus on its core business. The purchase price is expected to be received in Q3 2022. This strategic move aims to enhance their collaboration in AI and IoT growth.

Positive

• WISeKey divested its 51% stake in arago, allowing for a strategic refocus on core business activities.
• The divestiture is expected to strengthen collaboration in AI and IoT sectors, key drivers for future growth.

Negative

• None.

WISeKey Announces the Divestiture of arago

Zug, Switzerland, June 27, 2022 – Ad-Hoc announcement pursuant to Art. 53 of SIX Listing Rules – WISeKey International Holding Ltd. (“WISeKey” or the “Company”) (SIX: WIHN, NASDAQ: WKEY), a leading global cybersecurity, AI and IoT company, announced today that it has transferred its 51% controlling interest in arago GmbH (“arago”) to OGARA GmbH (“OGARA”).

As previously announced on April 25, 2022, WISeKey signed a Share Purchase and Transfer Agreement to sell its 51% stake in arago to a German consortium of investors led by arago’s founder through his investment company, OGARA.

The transfer of the shares gives OGARA full control of arago’s operations into the acquiring consortium, and establish the framework of the partnership between WISeKey and arago to work together on the increasing adoption of AI and IoT convergence as one of the primary factors driving the growth of the IoT market.

WISeKey’s management, in consultation with its board of directors, considered a number of factors, including the already implemented separation of its operations from those of arago, before effecting the transfer. The transfer does not affect WISeKey‘s right to the purchase price, the payment of which is expected in Q3 2022. The transfer will, however, allow WISeKey to move ahead with its strategic vision of refocusing on the core business.

About WISeKey:
WISeKey (NASDAQ: WKEY; SIX Swiss Exchange: WIHN) is a leading global cybersecurity company currently deploying large scale digital identity ecosystems for people and objects using Blockchain, AI and IoT respecting the Human as the Fulcrum of the Internet. WISeKey microprocessors secure the pervasive computing shaping today’s Internet of Everything. WISeKey IoT has an install base of over 1.6 billion microchips in virtually all IoT sectors (connected cars, smart cities, drones, agricultural sensors, anti-counterfeiting, smart lighting, servers, computers, mobile phones, crypto tokens etc.).  WISeKey is uniquely positioned to be at the edge of IoT as our semiconductors produce a huge amount of Big Data that, when analyzed with Artificial Intelligence (AI), can help industrial applications to predict the failure of their equipment before it happens.
Our technology is Trusted by the OISTE/WISeKey’s Swiss based cryptographic Root of Trust (“RoT”) provides secure authentication and identification, in both physical and virtual environments, for the Internet of Things, Blockchain and Artificial Intelligence. The WISeKey RoT serves as a common trust anchor to ensure the integrity of online transactions among objects and between objects and people. For more information, visit www.wisekey.com.

Press and investor contacts:

WISeKey International Holding Ltd  Company Contact:  Carlos Moreira Chairman & CEO Tel: +41 22 594 3000 info@wisekey.com

WISeKey Investor Relations (US)  Contact:  Lena Cati The Equity Group Inc. Tel: +1 212 836-9611 lcati@equityny.com

Disclaimer:
This communication expressly or implicitly contains certain forward-looking statements concerning WISeKey International Holding Ltd and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of WISeKey International Holding Ltd to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. WISeKey International Holding Ltd is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.
This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and it does not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”), the FInSa’s predecessor legislation or advertising within the meaning of the FinSA, or within the meaning of any other securities regulation. Investors must rely on their own evaluation of WISeKey and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of WISeKey.
The securities offered will not be, and have not been, registered under the United States of America Securities Act of 1933, as amended, and may not be offered or sold in the United States of America, absent registration or an applicable exemption from the registration requirements of said Act.

 

FAQ

What significant announcement did WISeKey make on June 27, 2022?

WISeKey announced the divestiture of its 51% stake in arago GmbH to OGARA GmbH.

How will WISeKey benefit from the sale of its stake in arago?

The divestiture allows WISeKey to refocus on its core business and strengthen its collaboration in AI and IoT.

When is WISeKey expected to receive the payment for the sale of arago?

The payment for the sale of arago is expected in Q3 2022.

What percentage of arago did WISeKey own before the divestiture?

WISeKey owned a 51% controlling interest in arago before the divestiture.

Who is acquiring WISeKey's stake in arago?

OGARA GmbH, a German consortium led by arago's founder, is acquiring WISeKey's stake in arago.