Telit Wireless Solutions Completes Acquisition Of Motorola Solutions’ M2M Modules Business Unit
Telit Wireless Solutions (AIM: TCM) and Motorola Solutions (NYSE: MSI) have successfully completed the transaction in which Telit acquired Motorola Solutions' M2M modules business unit, and Motorola Solutions’ associated employees have joined Telit. All existing Telit and Motorola products will be maintained and available as originally planned by the separate entities. Telit will continue to support and develop all products as needed, including the G24 family, G24-Light, G30 and C24.
The acquisition brings Telit’s consolidated pro forma revenues to approximately $180 million for the year ended December 31, 2010. This is equivalent to a pro forma market share of approximately 20% based on the current market analysis by Beecham Research (Beecham Research Market Brief: Worldwide Cellular M2M Modules Forecast, August 2010).
The transaction has a value of $23.0 million. An additional $3.0 million will be spent on inventory in relation to the newly-acquired product line over the coming months. Telit financed the transaction by placing approximately 24 million new Shares to raise £19.0 million (before expenses). The new shareholder structure lists Boostt B.V. Group (19.8%), Algebris Investments (22.1%), Idea Capital (9.3%), Sapfi Kapital Management GmbH (5.5%), Herald (4.9%), Greylock Partners (4.3%), Sherman Capital (4.1%), Rathbone (3.9%) and Kairos Partners (3.6%) as the most significant shareholders.
Currently Telit is in the final stage of transferring all Motorola M2M activities to the global Telit organization. The Telit infrastructure will assume logistical and technical support of all clients without delay.Machine-to-machine communication is a mega trend. Interconnected devices facilitate new ranges of applications and additional business opportunities for almost any industry sector. Intelligent applications will make work processes more efficient and everyday life easier for everybody. Oozi Cats, CEO of Telit said: “We found an excellent team of greatly skilled and highly motivated workforce and welcome them to the Telit family. Currently we see a multitude of companies from all vertical industries stepping into the M2M market or expanding their existing M2M businesses. Our growing organization is well-prepared to support and accelerate this rapid market growth by delivering the cutting-edge technology and premium support needed to create innovative solutions.”
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