of U.S.-Based GPS Module Maker Expands Market Opportunities for Telit's
Machine-to-Machine (M2M) Wireless Applications
Raleigh, NC - Dec. 21, 2011
- Telit Wireless Solutions (AIM: TCM), a global leader in
machine-to-machine (M2M) wireless technology, has entered into a binding
agreement to purchase Navman Wireless OEM Solutions, a leading designer
and manufacturer of world-class Global Positioning System (GPS) modules
and solutions, for $3 million in cash.
This latest Telit
acquisition comes on the heels of its March 2011 acquisition of Motorola
Solutions' M2M business and its July 2011 acquisition of Globalconect,
an M2M services and connectivity business. Navman is expected to
generate approximately $7.1 million of revenue and $0.2M of EBITDA in
the year to Dec. 31, 2011. The transaction will be completed on Jan. 3,
According to Telit CEO Oozi Cats, the acquisition of
Navman's technology and its U.S.- based executive engineering and sales
staff will make Telit a major contender in the GPS market while
providing an enhanced product portfolio for its M2M customers.
Navman acquisition provides Telit access to new GPS customers and
products beyond the traditional M2M industry," Cats said. "Navman's
reputation for delivering state-of-the-art GPS technology and the global
reach of Telit's sales and marketing organization put us in a strong
position of growth in the GPS sector."
"In addition, the
acquisition strengthens our position as the premier product and
consultative partner in the M2M industry by leveraging the synergies of
both companies to better serve our global customers," Cats said.
Arnott, VP, global OEM solutions, Navman Wireless OEM Solutions, who
will be managing the business unit under Telit's ownership, said: "We
are excited about the prospect of working with the Telit team to
continue bringing our quality GPS module solutions to the market. With
our pioneering GPS engineering background, we are also excited about the
possibility of creating new hybrid GPS and wireless M2M innovations for
According to the "World GPS Market Forecast to
2013" from RNCOS, shipments of GPS devices will grow at a compounded
annual growth rate (CAGR) of more than 20 percent this year through 2013
to reach 900 million units sold generating more than $70 billion in
"GPS-enabled location awareness and M2M industries
are experiencing substantial growth, and we're happy to see the
combination of two leading companies in these fields to strengthen their
participation in this space," said Kanwar Chadha, CMO of CSR plc, and
founder of SiRF. (LSE: CSR and NASDAQ: CSRE), a global provider of
wireless chipsets and a supplier of SiRF-branded GPS chipsets to Navman.
"The acquisition will lead to increased collaboration between CSR and
Navman in creating location-based solutions that also leverage Telit's
M2M expertise to address the needs of this exciting market."
of the current technology revolution known as "The Internet of Things,"
M2M is a fast-growing $50 billion business transforming society through
innovative connectivity in industries as diverse as healthcare, energy,
transportation, security and consumer electronics. M2M delivers
significant power and cost savings while increasing efficiency and
reliability through cellular or other wireless platforms.