Telit (Rome, Italy) has finalized a long awaited deal to acquire Motorola's (Schaumburg, IL, USA) machine-to-machine business unit for $23 million plus $3 million in related assets. Employees are now in the intermediate phase of the integration process, which has been in progress for some time.
According to Alexander Bufalino, VP of Global Marketing for Telit, his company is currently the number 3 M2M provider but seeking to become number 2. To do so, a successful M&A move was necessary.
The acquisition was handled out of Tel Aviv, an area of strong activity for both sides, which was advantageous when combined with the absence of language or cultural barriers. The deal is a true acquisition, which is to say that every single relevant Motorola employee is now with Telit.
In fact, one might say the deal is a true acquisition of technology as well. Very little overlap exists between the M2M activities of these companies--with the possible exception of the automotive vertical--so the deal is quite efficient. Specifically, Mr. Bufalino is looking forward to filling in gaps such as EDGE technology, which Telit has lacked. Motorola will also open up sales opportunities in previously untapped markets, add research and development power that didn't exist before, provide new and skilled workers, and of course introduce brand new technologies to their parent.
Mr. Bufalino does highlight continuity of supply as a primary focus however, so those Motorola technologies new to Telit will continue in the market without a hitch.
When asked how long until he expects Telit to capture that number 2 spot, Mr. Bufalino smiles and confidently predicts the end of 2011, at which time he expects his company to have a market share above 20%.
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