In a joint announcement in July, Telit and Thales, both working in the Internet of things (IoT) space say they intend to create a transaction where Telit incorporates Thales cellular IoT products business. The new company will be called Telit Cinterion and will be run under Telit leadership.
The resulting company will be a leading Western IoT provider, supporting expanded IoT portfolios of products, services, and bundles from their customers. The aspects of these programs will include hardware, software, and connectivity solutions.
The idea is to leverage Thales’s expertise in the now vital IoT security across SIM technology, modules, and connectivity.
The intended transaction will result in Thales transferring its cellular IoT module’s assets to Telit and receiving a 25% stake in the resulting company: Telit Cinterion.
Telit is a leading Internet of Things and Thales, which is based in France is a leader in Aerospace, Security, Digital Identity, and Defense. The joint announcement will cement an agreement for Telit to acquire Thales’s portfolio of cellular wireless communications modules, gateways, and data (modem) cards, ranging from 4G LTE, LPWAN, to 5G connectivity.
Telit is a California-based company, and Telit Cinterion will be based in the Western USA also, establishing the new company as a leader as a Western provider of IoT solutions. This move will expand Telit’s presence in the growing industrial IoT segments and end markets, including payment systems, energy, e-health, and security. With Thales’s expertise, the accompanying enhancement is the company’s ability to respond more expertly to the growing demand for cyber-secure IoT solutions in modules and connectivity.
Thales cellular IoT module business has about 550 employees, across 23 countries. The full terms of the transaction are due to close by the last quarter of 2022. The agreement is dependent on Thales entering into a binding shareholders agreement with Telit Cinterion, and overseen by DBAY Advisors, and Telit CEO Paolo Dal Pino.
There are plans for Telit Cinterion to spin off the automotive section and focus directly on Industrial IoT.
Thales | thalesgroup.com
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