u-blox to acquire SIMCom's cellular module product line

January 23, 2017 // By Julien Happich
In an asset deal worth USD 52.5 million, u-blox announced it is acquiring Shanghai-based SIMCom's cellular modem product line, its R&D team and customer base.

SIMCom Wireless is one of the world’s leading machine-to-machine (M2M) provider and the combined business is expected to make u-blox the dominant supplier of cellular modules world-wide.
As well as creating new economies of scale, the acquisition of SIMCom’s product portfolio offers additional solution options and price points which will widen u-blox’s customer base and increase its geographical reach.

The deal significantly increases the cellular module business in Asia, primarily China, and generates increased revenue in Europe and America. The larger scale will also provide the eventual opportunity to incorporate the recently announced u-blox’s cellular chips into select modules in the combined portfolio.

Following the transaction, SIMTech Group will remain as the manufacturing and supply chain partner of u-blox and all SIMCom’s existing products will remain available under the SIMCom’s brand name.

This acquisition, the biggest to date for Swiss company u-blox, ought to increase its revenues by approximately USD 75 million for the remaining three quarters of 2017, taking total revenues to the half-billion USD mark.

The assets will be integrated into u-blox’s cellular product center and help to expand the company’s R&D capacity by 150 specialists, and enlarge the sales organization.
The company now expects revenues to reach between CHF 485 and 515 million, with profits in the region of CHF 60 and 65 million including integration costs.

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