Telit and Thales Announce the Formation of Telit Cinterion, the Leading Western IoT Solutions Provider

Telit, a global leader in the Internet of Things (IoT), and Thales (Euronext Paris: HO), a global leader in Aerospace, Defense, Security, and Digital Identity, jointly announced today that Telit will purchase Thales’ cellular IoT solutions. Thales’ portfolio of cellular wireless communication modules, gateways, and data (modem) cards, ranging from 4G LTE, LPWAN, to 5G, are included in the proposed acquisition.

The proposed purchase will establish Telit Cinterion, based in California, as a major Western provider of IoT solutions, strengthening the company’s foothold in developing industrial IoT segments and end industries, such as payment systems, energy, e-health, and security. It also improves the company’s ability to respond to the growing demand for cybersecure Internet of Things (IoT) solutions in modules and cellular connection, thanks to Thales’ industry-leading technology.

“Innovation, scale and efficient IoT solutions are key for success. This transaction with Thales is arguably the most impactful one for Telit competitiveness.  While it will boost our ability to address customer needs more precisely from a richer portfolio, it will also enable us to deliver all new offerings derived from the experience, expertise, and the DNA of two companies that have made security and quality part of their brand promise from the very beginning.”

Paolo Dal Pino, Telit’s CEO

The Thales and Telit combination brings together complementary strengths. The business will provide a unique value proposition in a highly competitive global IoT market and will allow Thales to focus its investments on its three core activities in aerospace, defense and security and digital identity and security. The new combination will rely on a unique set of expertise brought by Thales and Telit employees. It will also benefit from leveraging both companies’ strong and complementary product portfolio and Thales’s experience in cellular connectivity.”

Philippe Vallée, Thales’ EVP Digital Identity and Security

With around 550 people in 23 countries, Thales’ cellular IoT module business serves many of the world’s leading brands. In 2021, it had sales in excess of €300 million. Thales will become a shareholder in Telit Cinterion in Q4 2022, pending the execution of a binding share transfer agreement, regulatory approvals, and other normal closing conditions. Telit Cinterion is controlled by asset manager DBAY Advisors and directed by CEO Paolo Dal Pino.

Thales’ cellular IoT products business and Telit’s customers and partners will continue to enjoy great supply, support, and service. All relevant parties will get regular information during the duration of the transaction, as well as during the closing and subsequent integration phases.

In order to concentrate on Industrial IoT, Telit Cinterion wants to split out and run the automotive IoT company separately following the close.

Deutsche Bank served as Thales’ sole financial advisor, while Rothschild & Co served as Telit’s exclusive financial advisor, DBAY Advisors.

Source: Telit

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