Novatel Wireless Completes $14.75 Million Sale of Hardware Module Product Lines to Telit Wireless Solutions, Inc.
April 11 2016 - 8:30AM
Novatel Wireless, Inc. (Nasdaq:MIFI) (the “Company”), a leading
provider of solutions for the Internet of Things (IoT), including
software-as-a-service (SaaS), today announced it has completed the
sale of certain of its hardware modules and related assets to Telit
Wireless Solutions, Inc. (“Telit”), for an upfront purchase price
of $11 million in cash, approximately $3.75 million in additional
cash payment for inventory within 90 days, and subsequent earn-out
amounts that may be paid following the closing of the transaction
if certain conditions are met. In connection with the sale,
Novatel Wireless granted Telit a license to develop, manufacture
and sell certain of the Company’s cellular modules, including
subsequent versions currently in development. Novatel
Wireless and Telit also entered into a manufacturing and supply
agreement whereby Novatel Wireless has agreed to purchase modules
from Telit following the closing of the transaction that will be
incorporated in certain Novatel Wireless hardware products going
forward.
“The disposition of these modules assets accelerates our
Company’s transformation from a hardware-centric manufacturer to a
true provider of IoT SaaS and Solutions,” said Sue Swenson, Chief
Executive Officer of Novatel Wireless. “We believe partnering
with Telit and leveraging its broad modules portfolio will provide
added flexibility and operational savings as Novatel Wireless
expands its global SaaS & Services offerings.”
Asset Sale to Micronet Enertec Technologies
Novatel Wireless also terminated its previously announced asset
purchase agreement with Micronet Enertec Technologies, Inc., which
related to the sale of the Company’s telematics hardware business
to Micronet. The Company remains interested in divesting its
telematics hardware business to a third party, and the termination
of the agreement with Micronet, among other things, permits the
Company to solicit interest in an asset divestiture transaction
from additional third parties, which may include Micronet.
“We will continue to explore opportunities to engage in a
transaction for our telematics hardware business as we reposition
Novatel Wireless as a full solutions provider, with comprehensive
offerings consisting of SaaS and services in combination with
underlying hardware,” said Sue Swenson, Chief Executive Officer of
Novatel Wireless.
Cautionary Note Regarding Forward-Looking
Statements
Certain statements in this press release may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements relate to a variety of matters, including, without
limitation, statements regarding the anticipated or expected
benefits from the sale. These forward-looking statements are made
on the basis of the current beliefs, expectations and assumptions
of the management of the Company and are subject to significant
risks and uncertainty. Investors are cautioned not to place undue
reliance on any such forward-looking statements. All such
forward-looking statements speak only as of the date they are made,
and the Company undertakes no obligation to update or revise these
statements, whether as a result of new information, future events
or otherwise, except as may be required by law. These
forward-looking statements involve many risks and uncertainties
that may cause actual results to differ materially from what may be
expressed or implied in these forward-looking statements.
Specific risks and uncertainties that could affect the
forward-looking statements set forth in this press release include:
the challenges and costs of restructuring the Company’s remaining
business activities, and achieving any anticipated benefits from
the proposed transaction; the distraction of management or other
diversion of valuable resources within each company caused by the
proposed transaction; and factors generally affecting the business,
operations, and financial condition of the Company, including the
information contained in Novatel Wireless’ Annual Report on Form
10-K for the year ended December 31, 2015, subsequent Quarterly
Reports on Form 10-Q, and other reports and filings with the
SEC.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with the proposed transaction, the Company will
file documents with the SEC, including a Current Report on Form 8-K
relating to the proposed transaction. Investors and security
holders are urged to read these documents when they become
available because they will contain important information about the
Company and the proposed transaction. Investors and security
holders may obtain free copies of these documents and other related
documents filed with the SEC at the SEC’s web site at
http://www.sec.gov or by directing a request to Novatel Wireless,
Inc., 9645 Scranton Road, Suite 205, San Diego, California 92121,
Attention: Stockholder Services.
ABOUT NOVATEL WIRELESS
Novatel Wireless, Inc. (Nasdaq:MIFI) is a leading global
provider of solutions for the Internet of Things (IoT), including
software-as-a-service (SaaS) solutions for the fleet telematics
market. Our innovative products and solutions provide
anywhere, anytime communications and analytics for consumers and
businesses of all sizes, with approximately 158,000 subscribed
fleet vehicles for Ctrack among the Company’s 520,000 global
subscribers. Novatel Wireless, Inc. is headquartered in San
Diego, California. www.novatelwireless.com. @MIFI (Twitter)
Media Contact:
Novatel Wireless
Anette Gaven
(619) 993-3058
agaven@nvtl.com
Investor Relations Contact:
Michael Sklansky
(858) 431-0792
msklansky@nvtl.com
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