Machine-to-machine technology provider Novatel Wireless Inc. has completed its acquisition of Feeney Wireless in a deal worth as much as $50 million.
The deal for Feeney, a maker of IoT products, system integration and services for fixed and mobile smartphones, is worth $25 million in cash and stock as well as an additional $25 million in potential earn-out payments over the next four years. With the transaction, Novatel Wireless will absorb the 91 full-time employees of Feeney and says the combination of products will make Novatel Wireless a total Internet of Things (IOT) provider.
Novatel is hoping to grab a large piece of the $4.8 billion in revenue projected to be raised by the M2M and IoT markets by 2018, according to IHS Technology. M2M module unit shipments are dominated by 2G today, but 3G will soon rule the revenue opportunity with the shift toward broadband technologies and with 4G emerging as the fastest-growing technology segment in terms of percentage of units, IHS says.
Alex Mashinsky, CEO of Notatel Wireless, says in a statement that Feeney Wireless’s product portfolio “aligns with our strategy to simplify IoT for our customers and partners.”
Ethan Ralston, president and CEO of Feeney, says in the same statement the deal will “accelerate growth on a global scale and broaden our customer base.”
According to Novatel Wireless, Feeney Wireless is expected to generate at least $38 million in revenue in 2015. Novatel Wireless says the transaction will immediately become accretive to its earnings.
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