Novatel Wireless agreed to acquire Enfora, Inc., a privately-held developer of machine-to-machine (M2M) intelligent asset-management solutions, for approximately US$64.5 million in cash at closing, subject to certain working capital adjustments, and possible additional payouts of up to $6 million depending on performance targets.
Enfora’s product portfolio consists of smart M2M solutions — embedded platforms, integrated platforms, and embedded software — based on a distributed intelligent and customizable architecture that provides a valuable link between an enterprise and its remote assets. The company had revenues of US$61.3 million during the 12 month period ended September 30, 2010, with gross margins of approximately 36 percent. Enfora was founded in 1999 and is based in Richardson, Texas .
This acquisition creates a market leader in wireless data selling into all end markets: enterprise, consumer and vertical markets,” said Peter Leparulo, Chairman and CEO of Novatel Wireless. “This acquisition expands our addressable market, broadens our range of complementary products, diversifies our customer base and enhances operating leverage. It will also strengthen our competitive position by leveraging our combined research and development talent and customer relationships. Enfora, more than any other company providing M2M data communications, is focused on adding value with customized software and services and fits with our business strategy of combining hardware and software into integrated solutions.”
Enfora will operate as a Novatel Wireless business unit.
Novatel Wireless supplies 3G and 4G Intelligent Mobile Hotspot products, software, USB modems and embedded modules. The company is based in San Diego.
http://www.novatelwireless.com
http://www.enfora.com
