Telit Communications has entered into a binding agreement to purchase Navman Wireless OEM Solutions, designer and manufacturer of Global Positioning System (GPS) modules and solutions, for $3 million in cash.
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 is expected to generate approximately $7.1 million of revenue and $0.2m of EBITDA in the year to 31 December 2011. The transaction enables Navman Wireless to concentrate on its rapidly growing fleet tracking and asset management business, which currently represents over 90% of company revenues.
The acquisition of Navman, which follows the two previous acquisitions earlier this year - the acquisition of Motorola Solutions’ m2m business unit and the acquisition of Globalconect Ltd, the connectivity services provider - is expected to complete on 3 January 2012.
Oozi Cats, Chief Executive of Telit, said “the Navman acquisition provides Telit with access to new GPS customers and products beyond the traditional M2M industry. 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 to benefit from the 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”.