Sale Provides for Cash Payment and Revenue Share to Paltalk, and Complementary IP to SecureCo to Accelerate Its Business Strategy
Paltalk, Inc., formerly known as PeerStream, Inc., a leading communications software innovator that powers multimedia social applications, and SecureCo, Inc., a provider of software applications and a network-as-a-service platform providing hyper-secure and anonymous data communications, announced that Paltalk has completed the sale of substantially all of the assets related to its secure communications business to SecureCo.
The secure communications business assets include communication software and operational capabilities for secure messaging and data applications targeting enterprise and government clients. The sale price included current and deferred cash payments that total $250,000 and provides for a revenue share on future software licensing, capped at a maximum of $500,000.
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“We believe that the sale of the secure communications business is a milestone for the Company as it represents a modest monetization of our historical investment in a business that we created and enables us to partner in its continued success via our revenue share arrangement. Importantly, the sale allows us to exclusively focus on our core business, the Paltalk and Camfrog multimedia social apps, which together are host to one of the world’s largest collections of video-based communities. The proceeds from the sale and potential cash from future revenue share payments will add to our financial strength and will be reinvested in the consumer apps,” said Jason Katz, Chairman and Chief Executive Officer of Paltalk.
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Alex Harrington, SecureCo’s CEO, added, “Paltalk has a legacy of great communication software. The acquisition of these complementary assets strengthens SecureCo’s product capabilities and paves the way for success in providing differentiated cybersecurity solutions for government and enterprise customers.”
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