Internet of Things tech firm Telit, which moved its headquarters from London to Irvine a few months ago, has strengthened its industry position via a deal with French conglomerate Thales.
Telit plans to buy the cellular IoT products unit of Thales to form a new business, called Telit Cinterion.
Under the agreement, Thales will become a 25% shareholder in Telit Cinterion, while asset manager DBAY Advisors, with offices in London, will be majority shareholders. It will be led by Telit CEO Paolo Dal Pino.
Thales’ cellular IoT module business, with approximately 550 employees across 23 countries, services many of the world’s top brands. It generated sales of more than $362 million in 2021.
The transaction is expected to close in the final three months of this year, subject to entering a binding share transfer agreement, regulatory approvals and other customary closing conditions.
The Internet of Things is a computing concept that describes the idea of everyday physical objects being connected to the internet and being able to identify themselves to other devices and send and receive data.
$800M+ Goal
“The headquarters of the combined entity will continue to be in Irvine,” Manish Watwani, the company’s chief marketing and product officer, told the Business Journal on Aug. 3.
“It’s been almost six months in the making,” Watwani said of the deal with Thales.
“We bought this business unit, it will be combined and integrated into Telit,” Watwani said. A dollar valuation was not provided for the transaction.
Watwani said revenue for the combined venture will be “north of $800 million” this year with a workforce close to 1,400 employees.
He said the goal for Telit Cinterion is to push revenue up to more than $1 billion or even $1.5 billion in three years. That would be well more than double the 2021 amount for Telit.
China Competition
The intended transaction includes Thales’ portfolio of cellular wireless communication modules, gateways, and data cards, ranging from 4G LTE, LPWAN to 5G, the two companies said in a joint statement July 29.
Telit Cinterion will provide customers with expanded IoT portfolio of products, services, and bundles comprising hardware, software, and connectivity solutions, the company said.
Company officials emphasize that Telit Centerion will be the biggest IoT player in the West—or the largest non-Chinese player.
Watwani said only China’s Quectel is larger.
Private Co.
“This transaction with Thales (Euronext Paris: HO) is arguably the most impactful one for Telit competitiveness,” Telit CEO Dal Pino said in the statement on July 29.
Dal Pino resigned from his post as president of Italy’s world-renowned Serie A soccer league earlier this year to devote himself exclusively to Telit.
The company previously traded on the London Stock Exchange and was taken private last year in a deal reported around $375 million.
