Telular Corporation has announced the signing of a definitive merger agreement to acquire SkyBitz, Inc. They claim that the combined companies will create the largest “pure player” asset tracking and management company in the world.
The acquisition expands Telular’s position in the M2M space as a result of SkyBitz’s customer base and proprietary SAAS technology platform. SkyBitz’s Global Locating System (GLS) satellite-based technology provides real-time visibility of many asset types.
For the current fiscal year ending December 31, 2011, SkyBitz expects to record $35 million of revenue, of which 45% will be derived from recurring monitoring services. SkyBitz also expects to be tracking and managing approximately 190,000 assets, a net increase of approximately 11% over the end of the prior year.
“I am very excited about the acquisition of SkyBitz as it gives us the leading position in an adjacent M2M vertical market, provides immediate incremental cash flow and builds upon our stream of high-margin, recurring service revenues,” said Joseph Beatty, president and chief executive officer of Telular Corporation. “SkyBitz’s management approach and growth objectives fit very well with Telular’s strategy and include growing its installed base of units, enhancing its international presence, and entering new vertical markets related to asset tracking.”
Dr. Homaira Akbari, president and chief executive officer of SkyBitz, plans to remain with the combined company as president of SkyBitz. In addition, SkyBitz’s experienced management team is expected to stay in its entirety. Transaction terms include a purchase price of $42 million, comprised of $35 million in cash and $7 million in newly issued shares of common stock.
