Security technology company Nxt-ID has announced plans to spin off its payments unit into a separately listed entity.

The new entity, which will apply for listing on Nasdaq, will include the payment, authentication and credential management assets of Nxt-ID. In addition, it will contain the assets acquired in the merger with Fit Pay last year.

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As part of the agreed terms, shareholders of the firm owning common shares on 15 October 2018 will hold shares in both the companies.

The new company is committed to invest $6m for its operations, and focus on developing payment and authentication devices utilising NFC (near field communication), cryptocurrency, and blockchain technology.

Existing Nxt-ID COO and Fit Pay president Michael Orlando will head the new business as CEO.

Nxt-ID CEO Gino Pereira said: “Both businesses are experiencing an increased number of significant commercial opportunities, which require specialised focus to successfully execute them. These opportunities are sufficiently diverse such that the synergies of being under a single structure are outweighed by the need to focus on them separately.

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“In addition, it provides our current and potentially new shareholders the opportunity to participate in a pure play investment in both strategies, while increasing the transparency for the market in general, in terms of understanding and tracking the performance of each business.”

Moreover, the deal is expected to close on 15 November 2018/. This is subject to board and NASDAQ approvals and inter-company agreements.

Nxt-ID will retain assets of its healthcare arm LogicMark as well as assets of 3D-ID.