Novatel Wireless, one of the well known wireless broadband solutions service providers, is all set to acquire Enfora, Texas-based service provider of intelligent asset management solutions using M2M communications and wireless technology. It is an all cash deal of approximately $64.5 million plus some working capital adjustments that may extend up to a maximum of $6 million.
“This acquisition creates a market leader in wireless data selling into all end markets: enterprise, consumer and vertical markets,” said Peter Leparulo, Chairman and CEO of Novatel Wireless.
“This acquisition expands our addressable market, broadens our range of complementary products, diversifies our customer base and enhances operating leverage. It will also strengthen our competitive position by leveraging our combined research and development talent and customer relationships. Enfora, more than any other company providing M2M data communications, is focused on adding value with customized software and services and fits with our business strategy of combining hardware and software into integrated solutions.”
As Enfora has a diverse range of customers, it will directly benefit the Novatel in expansion of its market base. According to a research conducted by ABI Research, M2M connection revenue is expected to grow with a CAGR of over 22% by 2014. So, it is going to be a great prospect for Novatel as Enfora is already into smart M2M solutions.
The deal will not only expand the customer base of Novatel, but also create a strong profile for both companies and enhance the geographical reach. The acquisition deal is expected to close by end of this month and will be funded from cash on hand. Novatel’s been expanding through several partnerships, beyond its acquisitions, even with the recently funded Nomadesk.
