Bit late, but important to report: US-headquartered IoT module maker Telit Cinterion announced at the start of the month (July 3) that it has agreed to sell its cellular IoT automotive business to German IoT and IT electronics manufacturer Kontron for €24.5 million. The deal covers Telit Cinterion’s complete portfolio of 4G/LTE and 5G automotive modules, and further “sharpens” its own focus, it said, on pure-play industrial and commercial IoT.
The deal follows Telit’s acquisition of the cellular IoT unit of French aerospace and security company Thales last summer (closed at the start of 2023) in return for a quarter-share of its expanded industrial IoT business. The deal saw Thales take a 25 percent stake in the expanded Telit business, rebranded as Telit Cinterion. Telit’s automotive IoT division was not included in the transaction, and spun-off from Telit Cinterion ahead of its sale.
Kontron, headquartered in Augsburg, has around 4,500 staff in 21 countries. It posted sales of €1.342 billion in 2022. Telit Cinterion’s automotive division posted revenue of €100 million in 2022. The agreement, subject to approval from respective workers’ councils, as well as from regulatory bodies, marks a “significant strategic move” to enhance its IoT portfolio, it said. The deal is expected to close in August; the business will be integrated into Kontron Europe.
The acquisition will go some way to replace revenues from its IT services business, which it sold to France-based construction and engineering company VINCI Energies for €392.3 million in December; the business included operations in the Czech Republic, Slovakia, Poland, Croatia, Serbia, Albania, Montenegro, Northern Macedonia, Germany, and Switzerland. Kontron suggested it will make further “strategic IoT acquisitions”.
Hannes Niederhauser, chief executive at Kontron, said: “[This] marks another milestone in Kontron’s journey towards becoming a global leader in IoT… This strategic move solidifies our commitment to delivering exceptional IoT solutions to our customers and propels us towards the forefront of innovation. With our expanded portfolio, we will drive transformative change, leverage emerging technologies, and create a seamless IoT ecosystem that empowers industries worldwide.”
