REF NO.: 79
|SUBJECT:||Cathexis achieves multimillion-dollar deal with United Arab Emirate’s leading technology Investor|
|DATE:||Nov. 30, 2006|
Newfoundland’s Cathexis Innovations Inc. announced today that it has entered into a $3 million agreement with the CERT Group of Companies in Abu Dhabi, United Arab Emirates, to bring its industry leading Radio Frequency Identification (RFID) technology to the global market.
Cathexis provides mobile RFID readers and web-based software that allows “in-field” identification, tracking and management of assets for applications that include field maintenance and servicing, tool tracking and courier/delivery services. 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. As well, RFID tags have the benefit of being far more rugged, accurate and secure as an asset tagging technology than barcodes. The market for this technology is rapidly expanding – the current sales in the range of $5 billion US are expected to increase to $10 billion by 2012.
The success of Cathexis comes from their unique product line, including a mobile wireless RFID reader (IDBlue) that integrates with their internet-based asset tracking software. Their technology has been recognized by leading companies in the software industry as one of the most innovative firms in its field. The deal with CERT will see IDBlue launched in the South Asia-Middle East - North Africa region in a working collaboration between CERT and Microsoft. Cathexis was recognized in the November issue of Microsoft’s “Innovation” magazine 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 University of Newfoundland 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.
“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.”
Gateway Without Borders is an initiative of the P. J. Gardiner Institute for Enterprise and Entrepreneurship in the Faculty of Business, and works closely with CERT in the UAE. Gateway Without Borders is supported by the Atlantic Canada Opportunities Agency.
Steve Taylor adds, “The support from local organizations has been invaluable in both helping Cathexis get started as well as growing to the point where the company can step onto the international stage. ACOA, the National Research Council’s IRAP program, Memorial University and now Gateway Without Borders have the sincere thanks of Cathexis and its shareholders. ”
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For further information contact, Steve Taylor, CEO, Cathexis at 754-7343 or email@example.com; or Daryl Genge, project director, Gateway Without Borders, P. J. Gardiner Institute, Faculty of Business Administration, Memorial University at 737-6153 or firstname.lastname@example.org. or Meaghan Whalen, communications co-ordinator, Faculty of Business Administration, Memorial University at 737-2616 or email@example.com.