Telit Communications (Trieste, Italy), a vendor of M2M technology, on Thursday announced that it has completed the acquisition of GlobalConect Ltd, a provider of cellular connectivity for M2M applications, for $2.9 million.
According to Telit, the acquisition will allow it to offer its customers wireless connectivity for its M2M produces. Dan Amir, CEO and founder of GlobalConect, is joining Telit to lead the Company's connectivity activities.
The $2.9 million acquisition included approximately $0.7 million in cash and 800,000 newly issued ordinary shares with an assumed value of GBP1.70 per share.
In the event that within 3 years from the completion of the acquisition, conditions related to the performance of GlobalConect are met and the Company’s share price does not reach at least 170p, Telit will issue the current shareholders of GlobalConect additional shares, up to a maximum of 360,000, according to Telit.
This is the second major acquisition by Telit this year, having acquired Motorola M2M from Motorola in March. Telit acquired Motorola M2M for $23 million.
Earlier this month Beecham Research, a research firm, released a study that said that Telit’s market share of the “modules” market over 2010 rose from 12.4% in 2009 to 16.1% in 2010, indicating that its market share was on the way up.