The initial cash purchase price is $11mln, plus a conditional earn-out clause that Telit expects will not be a material amount.
Telit will take control of several cellular module product lines and their related IP, and has been granted an exclusive licence over other Novatel IP related to the acquired product lines, plus subsequent versions currently in development.
The acquisition falls firmly into the “bolt-on” category, with Telit saying that although the acquisition enhances its product offering in the security market segment, it is not expected to have a big impact on the group's financial performance.
"The acquisition of these products and associated IP strengthens Telit's position in the security market segment, a segment that is expected to be an early adopter of LTE Cat1. The acquisition is part of our strategy to enhance our product offering by both acquisition and our own R&D," said Oozi Cats, Telit's chief executive.