Telit has reached an agreement with Thales to acquire the French security company’s cellular IoT products, strengthening its presence in the segment and adjacent vertical markets, including payment systems, energy and e-health.
In a statement, Telit noted that the proposed deal would lead to the creation of Telit Cinterion, a new venture under his leadership targeting a leading position in the provision of IoT services.
The transaction is expected to close in the fourth quarter, subject to regulatory approvals and other customary closing conditions. If successful, Thales would receive a 25% stake in the new company.
Other financial terms were not disclosed.
Thales’ IoT business is a massive operation, with around 550 employees in 23 countries. It generated a turnover of more than 300 million euros in 2021.
Scale and efficiency
The proposed combination would see Thales transfer its portfolio of cellular wireless communication modules, gateways and SIM technology to Telit.
Telit explained that this decision further strengthens its ability to respond more expertly to the growing demand for cyber-secure IoT systems in modules and cellular connectivity through Thales technologies.
Another element of the deal will include the spin-off of Telit’s automotive unit Cinterion, with the aim of focusing more on industrial IoT.
Telit CEO Paolo Dal Pino will lead the new company: he said large-scale and efficient IoT solutions “are the key to success”.
The deal would be “most impactful for Telit’s competitiveness”, he added.
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