logo-loader

Telit Communications buys NXP telematics unit

Last updated: 17:25 23 Dec 2013 AEDT, First published: 18:25 23 Dec 2013 AEDT

no_picture_pai

Telit Communications (LON:TCM) has acquired NXP Semiconductors' automotive telematics on-board unit platform (ATOP) for US$9mln.

ATOP is a solution for vehicle manufacturers that enables them to implement telematics services like eCall, the European initiative to bring rapid assistance to motorists involved in a collision anywhere in the European Union, on a single compact and cost efficient package.

Of the US$9mln consideration, US$2mln will be paid in cash, with the rest being satisfied through the issue of Telit shares.

Telit will not only be getting the sales, engineering and support staff of the ATOP business, but also a new customer base.

"The ATOP acquisition provides Telit with additional expertise in automotive platforms which are becoming increasingly dependent on advanced software engineering, as well as a significant customer base which has already designed systems with ATOP,” said Oozi Cats, chief executive of Telit.

“The multi-service capable ATOP platform provides support for a range of features from its single package, including vehicle location & tracking, remote starting and diagnostics as well as business applications such as fleet management. The acquisition also delivers our teams a high level of competence in system security, necessary for protecting not only vehicle but also the increasingly important elements of driver privacy under such applications," he added.

Lars Reger, vice president of New Business and R&D Automotive at NXP Semiconductors, revealed NXP would stay involved in the future of ATOP by becoming a shareholder in Telit and taking a seat on the company's board of directors.

Shares in Telit have been on a tear in the last two months, rising from 110.69p at the end of October to 185p last Friday.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

8 hours, 31 minutes ago