The Rome-based maker of M2M modules said the acquisition would boost its revenues to 180 million dlrs a year, based on 2010 proforma numbers.
The company said it would issue 23,793,750 new ordinary shares to pay for the 26 million dlr acquisition. Telit directors said, in a document accompanying the share placement, that they believed the purchase will be “earnings enhancing” in the first full year of ownership.
Oozi Cats, Telit CEO, said in a statement that he was confident the acquisition would help the company grow in the M2M market, while generating cost savings and new opportunities for cross-selling of products.
"This acquisition is a strategic milestone for our company,” he said.
Telit, which has grown steadily in recent years, develops, manufactures and markets M2M modules that enable machines, devices and vehicles to communicate via wireless networks.
Motorola M2M specializes in the design, development, integration, evaluation and deployment of M2M applications worldwide. It makes a variety of m2m modules for wireless technologies such as GSM, GPRS, CDMA and WCDMA. The company has more than 100 customers and distributors globally.