Port Townsend mobile software company Intellicheck Mobilisa has sold part of its business to the Jamestown S’Klallam Tribe, based in Sequim on the Olympic Peninsula.
Intellicheck Mobilisa, a mobile-software company in Port Townsend, has sold part of its business to the Jamestown S’Klallam Tribe, based in Sequim on the Olympic Peninsula.
The tribe acquired the Mobilisa section of the business, which focuses on designing and maintaining wireless signals over water, as well as on land. The Mobilisa team worked to test Wi-Fi service on Washington state ferries in the early 2000s and installed wireless service on the British Columbia Ferries.
Terms of the deal between Intellicheck and the tribe were not disclosed.
The Jamestown S’Klallam Tribe will fold Mobilisa, and four employees, into the tribe’s economic-development division, called Jamestown Networks. The division buys broadband capacity from a Tacoma nonprofit called NoaNet, then brings broadband access to rural areas.
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Jamestown Networks, or JNet, sells broadband capacity to mostly government entities, including Yakima County and the Port Townsend School District.
Mobilisa has a long history of bringing Internet access to isolated and tough-to-reach areas, said Douglas Sellon, executive director of the tribe’s economic-development authority.
“It’s important to us to get to rural areas because those are the folks who have been left out,” Sellon said. “That’s a critical issue for us as well in Indian Country on reservation properties.”
Jamestown S’Klallam has worked with Mobilisa in the past to bring Internet access to the Makah Tribe’s reservation in Neah Bay. Jamestown will take on all Mobilisa’s existing customers.
The acquisition also provides another way for the tribe to bring in money to provide services such as health care and education for its community, Sellon said.
Jamestown S’Klallam is a non-land-based tribe — it does not have a reservation — and is buying back some of its accustomed territory.
Intellicheck, which has rebranded to be known by that name only, will remain a separate company that works on identity authentication technology.
CEO Bill Roof said that the company, which has struggled financially for years, would shift its focus to what has long been its core business — performing ID checks for police officers, retail companies and other businesses.
“That is completely disassociated with wireless,” Roof said. “We took a look 10 months ago at our core competencies — wireless and ID solutions.”
The company concluded it could only draw recurring revenues at high margins from ID authentications, said Roof, who became the CEO nearly a year ago with plans to turn around the company.
Intellicheck posted a loss of $1.2 million on revenue of $2.3 million in the second quarter. But Roof was optimistic, saying in a statement at the time that his team had “revitalized and focused the product line.”
Intellicheck will concentrate on different types of ID authentication, with special attention to its mobile app that allows police officer to check people’s backgrounds on the go.
Shares of Intellicheck Mobilisa, traded on the NYSE MKT stock exchange, rose nearly 6 percent during the day Wednesday to $1.09, and closed at $1.05.