Enfora Acquisition by Novatel Wireless
November 8, 2010 Novatel Wireless, Inc. has entered into a definitive agreement to acquire Enfora, Inc., a privately-held, Texas-based provider of intelligent asset-management solutions utilizing wireless technology and machine-to-machine (M2M) communications. Enfora will operate as a Novatel Wireless business unit, and the combined company will leverage synergies in product development, sales channels and complementary resources.
Frequently Asked Questions
Q. What is the cost of the acquisition?
A. Under the terms of the agreement, Novatel Wireless will pay approximately $64.5 million at closing, subject to certain working capital adjustments. Possible additional consideration of up to $6 million is contingent on certain performance targets being met.
Q. What is your strategic rationale for this acquisition?
- Diversifying Novatel Wireless' customer base and product lines into adjacent markets.
- Advancing the company's strategy of providing intelligent devices to all end markets – enterprise, consumer, and vertical applications. Enfora has developed differentiated solutions for key market segments, including transportation, industrial automation, security, and healthcare.
- Creating a strong growth profile by bringing together long-term customer relationships with wireless carriers, cable operators, distributors, retailers, MVNOs, leading OEMs in both mobile computing and vertical markets, enterprises, and application service providers.
- Leveraging the research and development, product portfolios, and geographic reach of the combined company.
Q. Why is Enfora selling at this time?
Being a part of a larger and stronger company was the next logical step for Enfora. Enfora customers will benefit in a number of important ways with access to significant new capabilities in wireless technology. In that vein, Novatel Wireless also brings deep, trusted relationships with the world's leading wireless carriers. Both companies have a similar business strategy of providing customers with integrated solutions, supported by a strong focus on customer service. The combined company of Novatel Wireless and Enfora is a great strategic fit.
Q. What does Novatel Wireless gain from this acquisition?
- This acquisition creates a market leader in wireless data selling into all end markets: enterprise, consumer and vertical markets.
- Enfora expands our addressable market, broadens our range of complementary products, diversifies our customer base and provides significant operating leverage.
- It will strengthen our competitive position by leveraging our combined research and development talent and customer relationships. Enfora is focused on adding value with customized software and services and fits with our business strategy of combining hardware and software into integrated intelligent solutions.
Q. Will Enfora continue to remain a separate offering/brand and company?
A: For now, Enfora will continue to serve its existing customers with existing product portfolio and operate as a business unit under Novatel Wireless, Inc. Presentation: Enfora Acquisition Link to Press Release Investor contact: William A. Walkowiak, CFA Novatel Wireless (858)431-3711
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Media contact: Charlotte Rubin Novatel Wireless (858)812-3431
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