NXT-ID Inc (NASDAQ:NXTD) Making Big Moves

NXT-ID Inc (NASDAQ:NXTD) has not put out a lot of news this year. But when it has, it's been big news. The latest news is no exception. As a result, shares bounced hard and we might be finally getting the breakout we've been calling for.The latest news from the company is that NXTD entered into an interest purchase agreement to acquire 100% of the membership interests of LogicMark, LLC, a leading provider of unmonitored personal emergency response devices (PERS). As per the terms of the agreement, NXT-ID, Inc. will acquire LogicMark for $20 Million in cash, with an anticipated closing date no later than June 30, 2016, subject to customary closing conditions, including a financing contingency. In addition, LogicMark members will be paid an earn out based on achieving certain performance goals within the next 18 months. The financing for the acquisition will be a combination of senior secured debt and equity.

The audited financial statements for LogicMark for the year ended December 31, 2015 showed revenues of $11.1 million and pre-tax net income of $3.1 million. The company has a staff of 22 full-time professionals, 3 part-time professionals, and 5 contractors. NXT-ID, Inc. plans to integrate its voice biometric technology as well as fall detection sensors and miniaturization skills to future versions of LogicMark products. In addition, the company believes it can potentially enhance the retail presence of LogicMark products.

This is the second big deal of the year for NXTD. In January, the company signed a deal with WorldVentures. WorldVentures made a strategic investment of $2 million in Nxt-ID to develop a proprietary new wireless smart card for its members—numbering in the several hundreds of thousands worldwide—based on Nxt-ID’s Wocket, a unique smart wallet that serves to securely store all credit cards. The smart card will be customized with additional technologies and wireless features, such as the ability to seamlessly integrate with WorldVentures’s DreamTrips App to wirelessly check in and earn loyalty points towards free DreamTrips vacations at select restaurants.Then in February, NXT-ID and its partner WorldVentures announced the first purchase order for a new SmartCard being developed for WorldVentures vacation club members. The purchase order is for up to $15 million and is subject to WorldVentures acceptance of the prototype card now being manufactured. The purchase order calls for equal monthly deliveries with a value of $2.5 million a month from July to December 2016. With the exception of the order for the first $2.5 million, WorldVentures has the option to cancel, defer or increase monthly shipments with 90 days written notice on subsequent orders.We've been saying for awhile that the deal with WorldVentures is a winner for NXT-ID. We think the deal with WorldVentures is just the start of more to come between NXT-ID and WorldVentures. It’s quite possible that WorldVentures will eventually take over NXT-ID or the two firms will merge. WorldVentures already owns 24% of NXTD and a merger with a publicly traded company like NXTD would give WorldVentures founder Wayne Nugent some liquidity. WorldVentures is privately held and he owns 90% of the company. CEO Gino Pereira said recently:

"We remain very focused on delivering the new WorldVentures DreamTrips smart cards which are currently in pre-production and will be ready for field testing in the coming weeks. We expect to make our first production deliveries to WorldVentures in July 2016."

Currently trading with a market cap of $22 million, NXTD has been making major moves that will transform the company and turn the stock into a winner for investors. We like that CEO Gino Pereira is focused on deals and is building a solid foundation for the company. It's only a matter of time before NXTD is bought out or taken over by WorldVentures. Shareholders just need to be patient and let it happen. We feel it's not a question of if, but when. We will be updating Insider Financial as soon as we know more. For continuing coverage on NXTD, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in NXTD and have not been compensated for this article.