Telit Communications, a firm speacialising in enabling internet of things (IoT) on Monday said it has agreed to acquire several cellular module product lines, related intellectual property and other assets from San Diego-based Novatel Wireless. The financial description of the deal was stated as ‘an initial cash consideration’ of $11 million.
The company said the acquisition price also includes a conditional earn-out consideration, which Telit believes will be “non-material”.
As part of the Acquisition, Telit acquired specific IP and was granted an exclusive license to other Novatel IP related to the acquired cellular module lines, including subsequent versions currently in development.
“The acquisition of these products and associated IP strengthens Telit’s position in the security market segment, a segment that is expected to be an early adopter of LTE Cat1. The acquisition is part of our strategy to enhance our product offering by both acquisition and our own research and development,” Chief Executive Oozi Cats said in a statement.
Telit noted that while the acquisition “forms an important part” of its strategy to enhance its product offering in the security market segment, it is not expected to have a material impact on Telit’s financial performance.