Telit taps Thales IoT assets to create new division - Mobile World Live

Telit taps Thales IoT assets to create new division

01 AUG 2022

Telit struck an agreement with Thales to acquire the French security company’s cellular IoT products, expanding its presence in the segment and adjacent verticals including payment systems, energy and e-health.

In a statement, Telit noted the proposed deal would lead to the creation of Telit Cinterion, a new business under its leadership targeting a front running position in provision of IoT services.

The deal is expected to close in Q4, subject to regulatory approvals and other customary closing conditions. Should it go through, Thales would receive a 25 per cent stake in the new company.

Other financial terms were not disclosed.

Thales’ IoT business is a sizeable operation, with approximately 550 employees across 23 countries. It generated sales of more than €300 million in 2021.

Scale and efficiency
The intended tie-up would see Thales transfer its portfolio of cellular wireless communication modules, gateways and SIM technology to Telit.

Telit explained the move further enhances its ability to respond more expertly to growing demand for cybersecure IoT systems in modules and cellular connectivity thanks to Thales’ technologies.

Another element to the deal will include the spin-off of Telit Cinterion’s automotive unit, in a bid to sharpen focus on industrial IoT.

Telit CEO Paolo Dal Pino will lead the new company: he said scale and efficient IoT solutions “are key for success”.

The deal would be “the most impactful one for Telit competitiveness”, he added.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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