Novatel Sells Hardware Telematics Business to Micronet Enertec



Novatel Sells Hardware Telematics Business to Micronet Enertec
Micronet Enertec, a manufacturer of rugged computers and tablets has announced yesterday the acquisition of the hardware telematics business of Novatel Wireless for a total purchase price of $24 million.

Novatel Wireless and Micronet Enertec will enter into a manufacturing and supply agreement whereby Novatel Wireless commits to purchase from Micronet Enertec telematics products that are expected to generate significant revenues for a period of at least three years.

In 2015, the Telematics business of Novatel Wireless generated approximately $22 million in revenue. Annual revenue for 2016 is anticipated to grow by 20% with estimated EBITDA of approximately 18% of revenues.

$12 million of the purchase price will be paid at closing, with two payments of $6 million on each of the first two anniversaries of the closing date. Micronet Enertec intends to finance the transaction primarily with debt.

Novatel Sells Hardware Telematics Business to Micronet Enertec
Novatel Sells Hardware Telematics Business to Micronet Enertec
"This transformative acquisition positions us as a leader in the growing telematics space,“ stated David Lucatz, CEO of Micronet Enertec. “Our company will have a significantly expanded market opportunity, with experts estimating the market for stand-alone vehicle installed GPS-Wireless data devices to be ten times larger than the market for displays today.

This acquisition will enable existing and new customers to source their hardware solution from one integrated supplier - for example we will offer a stand-alone 'fixed installed' black box solution, a self-installed (OBD dongle) solution, a stand-alone rugged display as well as a fully integrated all-in-one solution."

Friday, February 19th 2016


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