Telit completes acquisition of Motorola's M2M business

$23 million plus additional $3 million on related inventory

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%.

ArticleTools

Featured Reports

Geo IoT Outlook: Technologies, Services, Applications

Geo IoT is anticipated to move well beyond simply the ability to determine proximity for commerce and various retail applications. Longer term, presence detection and location determination will be a critical aspect of IoT privacy, security, and preference management for both consumer and industrial applications. 
Buy now

 

DAS Market Analysis and Forecasts 2016 - 2021

Analysis of the DAS market, including carrier WiFi, small cells, and SON, and the leading companies in the DAS ecosystem and their solutions.  The report also includes evaluation of market drivers, challenges, and provides forecasts for 2016 to 2021.
Buy now

 

NextGen Network OSS/BSS Forecast 2016 - 2021

Comprehensive coverage of NGN OSS/BSS including opportunities within Big Data and IoT, analysis of the drivers and issues related to the technical and business aspects of OSS/BSS, deployments and operations issues, and quantitative analysis with forecasts for anticipated growth through 2021.
Buy now