Cathexis hooks multimillion-dollar deal
by Meaghan Whelan
One growing Newfoundland company has received a boost in the form of a multimillion-dollar foreign investment. Cathexis Innovations Inc., has signed a $3-million deal with the CERT Group of Companies in Abu Dhabi. The investment will be used to expand operations and market Cathexis products internationally.
Cathexis Innovations creates mobile Radio Frequency Identification (RFID) hardware and software. Often touted as being a replacement for barcodes, RFID tags contain a unique global identifier that allows products to be individually tracked from production to deployment. Cathexis technology has been recognized by leading companies in the software industry as one of the most innovative firms in its field Microsoft’s Innovation magazine recognized Cathexis as an emerging force in RFID and Cathexis is one of only a handful of Microsoft Gold Certified partners worldwide.
“The partnership with CERT will help position Cathexis to be the leading provider of mobile RFID technology to help corporations and governments track and manage their assets,” explained Steve Taylor, CEO of Cathexis. “We are now looking to expand our existing production and sales channels throughout North America and Europe, and to launch our products into the rapidly growing Middle East market. We expect that the partnership with CERT will help facilitate this growth.”
“Our objective is to develop the UAE as a leader in the knowledge economy by investing in companies worldwide that are becoming leaders in their fields,” said Dr. Tayeb Kamali, co-founder and vice-chairman of CERT, and vice-chancellor of the Higher Colleges of Technology. “In the case of Cathexis we are investing in an emerging industry and at the same time we are growing the technology discovery capacity in both the UAE and Canada and expanding our intellectual capital into the promising field of RFID.”
This deal was the result of the work of Gateway Without Borders, a unique partnership between Memorial and the Higher Colleges of Technology. The primary goal of this partnership is stimulating the growth of technology industries in Eastern Canada by connecting Canadian firms with investors and strategic partners in the Middle East.
Cathexis Innovations, founded by four Memorial engineering graduates, has remained connected with the university community since its beginning. The organization was a client of the Enterprise Gateway, winning the Gateway Entrepreneurship award in 2001 and also a client of the Genesis Centre. Most recently, Cathexis has been working with Gateway Without Borders to find investors and partners in the UAE.
“We are very pleased to see this deal come together. Cathexis is an excellent example of how innovative firms can develop from within the university to become internationally recognized,” said Dr. Axel Meisen, president of Memorial University. “The university’s role, through Gateway Without Borders, in helping this transaction come together is a great example of how Memorial can use its international networks to contribute to the development of high-growth industries in our province.”