NEW YORK (TheStreet) -- Shares of Novatel Wireless (MIFI) were jumping 11.14% to $3.39 on heavy volume mid-afternoon Friday after the wireless solutions company agreed to sell its mobile broadband unit to T.C.L. Industries Holdings for $50 million.
T.C.L. Industries is a subsidiary of the Chinese electronics company TCL.
Novatel's wireless solutions company includes its MiFi branded hotspots and USB model product lines, Novatel said in a statement late yesterday.
The sale comes as Novatel continues to shift from being a hard-ware centric manufacturer toward areas such as Internet of Things, the Wall Street Journal reported.
As part of the deal, the San Diego-based company will form a new public company called Newco. Novatel's senior executive management team and current directors will retain the same positions at Newco.
The transaction is expected to close in the first quarter of 2017.
After the sale closes, Novatel's Ctrack business will generate about 70% of its total revenue, according to the Journal. Ctrack supplies vehicle tracking, fleet management and insurance telematics services.
In August, Novatel said it would cut 45 jobs as it shifted toward higher-margin products, the Journal noted.
More than 3.03 million of the company's shares have changed hands so far today vs. its average volume of 663,282 shares per day.