Telit, a global leader in the Internet of Things (IoT), and Thales, a global leader in aerospace, defence, security and digital identity, jointly announced that they have entered into an agreement under which Telit intends to acquire cellular IoT products from Thales.
The contemplated transaction includes Thales’ portfolio of cellular wireless communication modules, gateways and data (modem) cards, ranging from 4G LTE, LPWAN to 5G.
The proposed transaction establishes California-based Telit Cinterion as one of the Western leading providers of IoT solutions, strengthening the company’s presence in growing IoT industry segments and end markets, including payment systems , energy, e-health and security. It also strengthens the company’s ability to respond more expertly to the growing demand for cyber-secure IoT solutions in modules and cellular connectivity, thanks to cutting-edge Thales technologies.
Thales’s cellular IoT modules business, which has around 550 employees in 23 countries, serves many of the world’s leading brands. It generated more than €300 million in revenue in 2021. The transaction is expected to close in the fourth quarter of 2022, subject to the conclusion of a binding share transfer agreement, regulatory and regulatory approvals. Under other customary closing conditions, Thales becomes a shareholder in Telit Cinterion, controlled by DBAY Asset Advisors and led by Telit CEO Paolo Dal Pino.
Thales’s cellular IoT products business and Telit’s customers and partners will continue to benefit from the exceptional provisioning, support and service to which they are accustomed. All parties involved will receive regular updates throughout the transaction, during closing and subsequent integration periods.
To better focus on industrial IoT, Telit Cinterion plans to spin off and separately manage the automotive IoT unit after closure.
Deutsche Bank acted as exclusive financial advisor to Thales, and Rothschild & Co as exclusive financial advisor to Telit, DBAY Advisors.