Telit Wireless Solutions, Inc., the U.S.-based mobile technology arm of Telit Communications (Trieste, Italy), a machine-to-machine (M2M) technology company, has entered into an agreement to purchase Navman Wireless OEM Solutions, a designer and manufacturer of Global Positioning System (GPS) modules, for $3 million in cash.
This latest Telit acquisition comes on the heels of its acquisition of Motorola Solutions' M2M business in March and its July acquisition of Globalconect, an M2M services and connectivity business. Navman is expected to generate approximately $7.1 million of revenue and $0.2 million of EBITDA in the year to Dec. 31, 2011. The transaction is expected to be completed on Jan. 3, 2012.
According to Telit CEO Oozi Cats, the acquisition of Navman's technology and its U.S.- based executive engineering and sales staff will make Telit a contender in the GPS market while providing a product portfolio for its M2M customers.
"The Navman acquisition provides Telit access to new GPS customers and products beyond the traditional M2M industry," Cats said.
George Arnott, vice president of global OEM solutions at Navman Wireless OEM Solutions, will be managing the business unit under Telit's ownership.
According to the World GPS Market Forecast to 2013 , shipments of GPS  devices will grow at a compounded annual growth rate (CAGR) of more than 20% this year through 2013 to reach 900 million units sold generating more than $70 billion in annual revenue.