CALGARY, Alberta—CSI Wireless, which designs and manufactures products using wireless and Global Positioning System technology, has agreed to sell its fixed wireless telephone business to Illinois-based Telular Corp. CSI said the move will allow it to focus its energy on its GPS offerings.
Telular, which produces technology that allows standard phones, fax machines and other communications equipment to utilize cellular networks, said it will acquire the fixed wireless assets for $13 million in cash and shares. The number of contingency Telular shares payable to CSI Wireless will be “based on the revenues earned by Telular on GSM and TDMA fixed wireless telephone sales in specific markets during defined periods,” according to CSI. The deal is expected to close on May 1.
CSI said that its decision to seek a buyer for the fixed wireless business followed its recent resolution to sell its telematics business and concentrate on its GPS products which are sold under the Outback, Satloc and Del Norte brand names in agricultural applications, such as GPS in tractors, sprayers and crop dusters.
“CSI has historically participated in both the wireless and GPS markets, which have fundamentally different business models,” said Stephen Verhoeff, president and chief executive officer of CSI Wireless. “This has created a number of challenges for the company, both internally and externally. After much deliberation, we determined that the GPS and fixed wireless businesses would perform better, and be more appropriately valued, if separated.
“Moving forward, CSI will be a ‘pure-play’ GPS company,” Verhoeff added.
