Novatel Wireless announced it has signed a definitive agreement to acquire DigiCore, a provider of M2M communication and telematics products for USD 87 million. Already 58 percent of DigiCore's shareholders have accepted the offer of ZAR 4.40 per share.
Novatel Wireless has worked with DigiCore since 2013 to jointly commercialize a SaaS platform. The acquisition will unify Novatel Wireless' hardware with Ctrack, a global telematics SaaS offering for the fleet management, user-based insurance, and asset tracking and monitoring markets. This, combined with the professional services offered by Novatel Wireless' recently acquired Feeney Wireless, delivers a full solution for the global transportation industry, the company said.
As a result of the acquisition, around 980 DigiCore employees globally will join Novatel Wireless. The takeover remains subject to approval by shareholders of DigiCore and receipt of regulatory approvals.
