Telit Sales its automotive division to the Chinese TUS International
18 July, 2018
Prior to the completion of the deal, Telit will unite all its sub-groups in Belgium, France and Israel into a 110 emloyees independent company
Telit Communications (AIM: TCM) signed an agreement to sell its automotive division to the Chinese TUS International for $105 million in cash. Although the automotive division saw significant growth in 2017, its sale will enable the Group to focus on its core business. Yosi Fait, CEO at Telit, said that this transaction will significantly reduce the company’s $25 million debt, “and provide us with the financial flexibility to focus our hardware and IoT services product lines, in order to strengthen our position in the IoT solutions space.”
The transaction requires a reorganisation of the automotive division within Telit. Prior to the completion of the deal, Telit will unite all its sub-groups in Belgium, France and Israel into a 110 emloyees independent company, including the relevant Intelectual Properties. This company will be transferred as a whole to TUS, to continue working under the Chinese ownership. In 2017 the automotive division generated approximately $63.2 million in revenue.
TUS provides camera-based advanced driver-assistance system (ADAS) solutions and is one of the 12 founding members of the National Intelligent and Connected Vehicle Innovation Center
of China. TUS’s single largest shareholder is Tus-Holdings Co. Ltd, a company established by Tsinghua University, which holds over 800 listed and non-listed investments.
Telit provides M2M and Internet of Things (IoT) enablement solutions, including cellular communication modules in all technologies, GNSS, short-to-long range wireless modules, IoT connectivity plans and IoT platform services. At the end of 2017, the Group employed 1,040 people worldwide. Its sale in 2017 totalled $374.5 million.