Telit Communications To Buy Motorola Wireless m2m Unit

Wireless technology firm Telit Communications PLC (TCM.LN) Friday said it has agreed to buy Motorola Solutions Inc.'s (MSI) machine-to-machine wireless communication subsidiary for $26 million, in a deal that boosts Telit's share of the fast-growing m2m market, and is expected to enhance earnings in the first full year following completion.

Telit is raising GBP19 million in a placing to fund the acquisition of Motorola m2m. The firm will issue 23.8 million new shares at 80 pence each, a 14% premium to Thursday's closing price.

Motorola m2m, headquartered in Tel-Aviv, Israel, specializes in the development of machine-to-machine wireless modules for a variety of communication standards. Telit said the combined company would have had a share of more than 20% of the global m2m market, and $180 million in revenue, in 2010.

The deal will also give Telit access to Motorola m2m's 100 customers and distributors, broaden its range of products, and provide unspecified cost savings.

The placing is fully underwritten by Investec, and shares are being issued to institutional and other professional investors.

-By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; tommy.stubbington@dowjones.com

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