London, 28 January 2011 – Telit Wireless Solutions (AIM: TCM) and Motorola Solutions (NYSE: MSI) have signed a definitive agreement in which Telit will purchase Motorola Solutions’ m2m modules line of products and Motorola Solutions’ associated employees will join Telit. The sale is subject to customary closing conditions and regulatory approvals.
The acquisition would bring Telit’s consolidated pro forma revenues to approximately $180 million for the year ended 31 December 2010. This is equivalent to a pro forma market share of approximately 20% based on the current market analysis by Beecham Research (1).
Oozi Cats, CEO of Telit said: “This acquisition is a strategic milestone for our company. It will allow us to pursue the further expansion into the growing m2m market. We are confident that the combination will generate cost synergies and new opportunities for cross-selling of products and increased customer account development. Moreover our company as well as our customers will profit from enhanced research and development capabilities, a broadening of Telit’s m2m product offering and the enhancement of m2m modules’ products through Telit’s commitment to long-term product development and support.”
In recent years Telit successfully acquired and integrated companies with complementary offerings, in various territories. Together with strong organic growth this policy resulted in a sustainable growth leading to expanding revenues year by year. Telit believes that the acquisition will be earnings enhancing in the first full year of ownership.
Motorola Solutions will continue to focus all of its resources on core areas of strength with unique advantages: mission and business-critical communication solutions for government, public safety and enterprise customers.
(1) Beecham Research Market Brief: Worldwide Cellular M2M Modules Forecast, August 2010