LONDON (Alliance News) - Telit Communications PLC on Monday said it has agreed to buy several cellular module product lines, related intellectual property and other assets from San Diego-based Novatel Wireless Inc for an initial cash consideration of USD11 million.
The wireless technology company said the acquisition price also includes a conditional earn-out consideration, which it believes will be "non-material".
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.
"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.
Shares in Telit were trading up 0.9% at 205.50 pence on Monday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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