Telular Corporation, which provides remote monitoring solutions typically over wireless networks, is seeking to extend its portfolio of M2M solutions. To that effect, it announced its decision to acquire SkyBitz, Inc., a provider of mobile resource management solutions.
As per the definitive agreement signed and the transactions terms arrived at by both companies, a purchase price of $42 million will be paid by Telular. The acquisition is expected to close in 60-90 days and is subject to the approval by FCC.
"I am very excited about the acquisition of SkyBitz as it gives us the leading position in an adjacent M2M vertical market, provides immediate incremental cash flow and builds upon our stream of high-margin, recurring service revenues," said Joseph Beatty, president and CEO, Telular Corporation, in a press release.
The acquisition will help Telular to expand its position in the M2M space and the company will benefit from SkyBitz's broad base of additional customers and proprietary SAAS technology platform.
Further, SkyBitz's unique Global Locating System that provides real-time visibility and patented use of GPS signals in tracking is expected to complement Telular's existing portfolio of Telguard and TankLink services.
The combined companies will help create the largest "pure player" asset tracking and management company in the world.
Dr. Homaira Akbari, president and CEO, SkyBitz, will to bring 20 years of valuable experience aboard the combined company and will continue as president of SkyBitz. The experienced management team is expected to help to grow the asset tracking business while SkyBitz's employees will continue to work from Washington, DC under the direction of Dr. Akbari.
For the current fiscal year ending December 31, 2011, SkyBitz expects to record $35 million of revenue and net income before non-cash items of approximately $5.0 million. Further it expects to increase it tracking and managing assets by 11 percent over the previous year. Telular's 2012 projected results will depend on the actual closing date of transaction.
Telular hosted a conference call on December 5, 2011. A replay of the call will be available through December 8, 2011 and will also be available via webcast from the Company's corporate website.
Oppenheimer & Co. Inc., is serving as the exclusive financial advisor to SkyBitz.
Mini Swamy is a contributing editor for IoTevolutionworld. To read more of her articles, please visit her columnist page.Edited by
Rich Steeves
