Telit Communications plc (AIM:TCM) has acquired Motorola Inc.'s m2m unit for $26 million. The acquisition comes just a week after the company said that it would take a more significant role in the growing consolidation of the communications sector.
Telit develops, manufactures and markets m2m (machine to machine) modules which enable machines, devices and vehicles to communicate via wireless networks.
Motorola m2m, which was founded by Motorola in 2000, fits Telit like a glove. The company specializes in the design, development, integration, evaluation and deployment of m2m applications worldwide and offers a variety of m2m modules for wireless technologies such as GSM, GPRS, CDMA and WCDMA.
Motorola m2m has more than 100 customers and distributors globally, and has developed partnerships with telecommunications carriers throughout the world.
Motorola m2m's headquarters are in Tel Aviv, and the unit manufactures products in Israel, China and Brazil.
Telit's CEO Oozi Cats said, "This acquisition is a strategic milestone for our company. It will allow us to pursue the further expansion into the fast growing machine-to-machine communication market and to continue to deliver on our strategy to become the leading provider of machine-to-machine communication solutions worldwide. We are convinced that the acquisition will generate synergies, new opportunities for cross-selling of products and increased customer account development. Moreover our company as well as our customers will benefit from enhanced research and development capabilities broadening Telit's machine-to-machine communication product offering."
Telit said it expected 2010 revenue to total $132 million, up 48% from $88.8 million in 2009.
Telit also announced that it is planning a private placement.
Teli's share price rose 5.7% on the AIM on Friday to ₤0.74, giving a market cap of ₤57 million.
Published by Globes, Israel business news - www.globes-online.com - on January 30, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011