u-blox Acquires Competitor Fastrax for €13m

u-blox Acquires Competitor Fastrax for €13m
Fabless GPS and wireless semiconductor maker u-blox continues in strategy of targeted investments with the acquisition of Fastrax, Oy, a Finnish company specializing in GNSS modules, technologies and antennas. u-blox spent €13 million to acquire the company.

“Over its 12 year history, Fastrax has established itself as a successful player in the global positioning markets worldwide,” said Thomas Seiler, u-blox CEO. “Their modules exploit the best features of four leading GNSS chip vendors and include advanced antenna modules. These products are an excellent complement to our existing portfolio, and will benefit from u‑blox’ economy of scale in terms of our advanced R&D capabilities, semiconductor technologies, global sales channels, established supply chain and high-volume manufacturing resources.”

“This merger brings together two recognized, profitable GNSS technology leaders with broad market base; the sum of this acquisition is significantly larger than its parts.” added Fastrax CEO, Taneli Tuurnala.

Based on Fastrax revenue u-blox indicated: “We expect revenue of around CHF 2 million (i.e. US$ 2.14 million) and an EBIT of CHF 0.1 million (i.e. US$ 0.1million) for the remainder of 2012, and revenue of CHF 13 to 15 million (i.e. US$ 14 to US$ 16 million) with an accretive EBIT margin of 15-20% for 2013.“

Targeted acquisitions
This is the third acquisition of GPS technologies companies or assets for u-blox. The company had already acquired the intellectual property of Australia-based SigNav in October 2011(read here) and software GPS technology provider Geotate in March 2009 (read here). u-blox has also acquired two companies in the wireless industry: Fusion Wireless (read here) and Cognovo (read here).

Tuesday, October 30th 2012

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