- Telit and Thales jointly announce the planned transaction whereby Telit Incorporates Thales Cellular IoT Products Business and advances under the leadership of Telit
- Combined company, to be called Telit Cinterionis the leading provider of Western IoT, supporting customers with an expanded portfolio of IoT products, services and packages including hardware, software and connectivity solutions
- Telit Cinterion will leverage Thales IoT security expertise in SIM technology, modules and connectivity
- Through this intended transaction, Thales wants to transfer its cellular IoT module assets to Telit and receive a 25% stake in Telit Cinterion
Telit, a global leader in the Internet of Things (IoT), and Thales (Euronext Paris: HO), a global leader in aerospace, defence, security and digital identity, today jointly announced that they have signed an agreement under which Telit intends to acquire Thales cellular IoT products.
The planned transaction includes Thales’ portfolio of cellular wireless communication modules, gateways and data (modem) cards, ranging from 4G LTE, LPWAN to 5G.
The planned transaction establishes California-based Telit Cinterion as a leading Western provider of IoT solutions, expanding the company’s presence in growing industrial IoT segments and end markets including payment systems, energy, e-health and security. It also enhances the company’s ability to more expertly respond to the growing demand for cyber-secure IoT solutions in modules and cellular connectivity, thanks to Thales’ leading technologies.
Paolo Dal Pino, CEO of Telit, commented:
“Innovation, scale and efficient IoT solutions are key to success. This transaction with Thales is possibly the most impactful for Telit’s competitiveness. While it will increase our ability to more precisely address customer needs from a richer portfolio, it will also allow us to offer all new offerings derived from the experience, knowledge and DNA of two companies that have made security and quality is part of its brand. promise from the beginning.”
Philippe Vallée, EVP Digital Identity and Security at Thales, added:
“The combination of Thales and Telit brings together complementary strengths. The deal will provide a unique value proposition in a highly competitive global IoT market and will allow Thales to focus its investments on its three core businesses of aerospace, defense and security, and digital identity and security.”
“The new combination will build on a unique set of expertise brought to the table by Thales and Telit employees. It will also benefit from leveraging both companies’ strong portfolio of complementary products and Thales’ expertise in cellular connectivity.”
Thales’ cellular IoT module business, with approximately 550 employees in 23 countries, services many of the world’s leading brands. It generated sales of more than €300 million in 2021. The transaction is expected to close in the fourth quarter of 2022, subject to the execution of a binding share transfer agreement, regulatory approvals and other customary closing conditions, Thales will becomes a shareholder of Telit Cinterion, controlled by DBAY Advisors asset manager and led by Telit CEO Paolo Dal Pino.
Thales’ cellular IoT product business and Telit’s customers and partners will continue to receive the outstanding supply, support and service they are used to. All relevant parties will receive regular updates throughout the transaction, at closing, and subsequent integration periods.
To sharpen the focus on Industrial IoT, Telit Cinterion plans to spin off and separately manage the Automotive IoT unit after closing.
Deutsche Bank acted as exclusive financial advisor to Thales and Rothschild & Co acted as exclusive financial advisor to Telit, DBAY Advisors.