11th Jul 2011 07:00
11 July 2011
TELIT COMMUNICATIONS PLC
("Telit" or the "Company")
Acquisition and Issue of Shares
Telit Communications PLC (AIM: TCM), a global leader in machine-to-machine ("m2m") communications, is pleased to announce that it has completed the acquisition of GlobalConect Ltd, a company which provides cellular connectivity services to customers of m2m applications and solutions.
The acquisition of GlobalConect will allow Telit to offer its customers wireless connectivity. Telit's management believe that this will become a significant building block of its services business and further improve Telit's customer proposition as it offers connectivity to its m2m solutions. Dan Amir, CEO and founder of GlobalConect, is joining Telit to lead the Company's connectivity activities.
As consideration for the acquired shares, Telit paid a total consideration of approximately US$2.9m made up of approximately US$0.7 million in cash and 800,000 newly issued ordinary shares with an assumed value of GBP1.70 per share. In the event that within 3 years from the completion of the acquisition, conditions related to the performance of GlobalConect are met and the Company's share price does not reach at least 170p, Telit will issue the current shareholders of GlobalConect additional shares, up to a maximum of 360,000.
Oozi Cats, Chief Executive of Telit commented: "Adding wireless connectivity to our offering is an important factor for Telit's continued growth and success. Our customers expect superior m2m solutions from one source and with the acquisition of GlobalConect we will now be in a position to address their needs more comprehensively."
Dan Amir, CEO of GlobalConect said: "I am excited about the move to Telit. We have an opportunity to leverage our activity within Telit's global customer base to contribute significantly to building Telit's service offering."
Application has been made for 800,000 new ordinary shares of 1 penny each to be admitted to trading on AIM pursuant to the acquisition. The new ordinary shares will rank pari passu with the Company's existing ordinary shares and trading is expected to commence on 11 July 2011.
In accordance with the FSA's Disclosure and Transparency Rules, the Company would like to notify the market that following the admission of these shares to trading:
·; Telit's capital consists of 102,564,575 ordinary shares with voting rights
·; Telit does not hold any ordinary shares in Treasury
Therefore, the total number of voting rights in Telit is 102,564,575.
The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Telit under the FSA's Disclosure and Transparency Rules.
For further information:
Telit Communications PLC | Tel: +39 06 4204601 |
Oozi Cats, CEO | |
Yosi Fait, Finance Director | |
Yariv Dafna, CFO | |
Investec Bank | Tel: +44 20 7597 4000 |
Andrew Pinder / Patrick Robb / Dominic Emery | |
Financial Dynamics | Tel: +44 207 831 3113 |
James Melville-Ross / Clare Thomas |
Notes to editors
Telit is a global leader in the development and manufacture of wireless machine-to-machine ("m2m") communication modules for a variety of applications. Through its 20 sales offices and more than 50 distribution channels, Telit covers more than 60 countries supporting about 1,000 customers with products in manufacture and about 2,000 customers which are in product design discussions or process.
It is the third largest supplier of m2m modules in the world with a market share of approximately 16%. In March 2011, Telit completed the strategically important acquisition of Motorola m2m for a consideration of $22.5 million, which further strengthens its strong competitive market position.
Telit is one of the few companies in the industry with full control over the underlying technologies in its products. It boasts strong in-house technology and research and development expertise.
Telit is listed on AIM (Ticker: TCM). www.telit.com
Related Shares:
TCM.L