Telit Communications has announced the receipt of a preliminary all-share bid approach from Swiss company U-blox. Under the terms of the Proposal, Telit shareholders would receive U-blox shares with a value of GBP 2.50 per Telit share, which would result in Telit shareholders owning approximately 53 percent in the combined company, said Telit in a brief statement. "The board of Telit is considering the proposal… and a further announcement will be made when appropriate," said Telit, adding that “the proposal assumes any such merger would be structured as an offer for Telit by U-blox."
Separately, U-blox said discussions were still at an early stage and subject to due diligence but that its board believed a deal had "a strong strategic rationale and could result in substantial synergies for both organisations.”
Earlier this month, Telit Communications said it had rejected a takeover offer from Lantronix, a producer of IoT products and services, and had also received a preliminary approach from asset management firm DBAY Advisors.
The company reported revenues of USD 245.0 million for the nine months to 30 September, down from USD 274.5 million in the year-earlier period, but added that Q3 results remained resilient in spite of continued lockdown measures across the group’s markets.
