Telit buys Thales IoT business, spins off automotive business

Telit buys Thales IoT business, spins off automotive business

Business news |
By Nick Flaherty

Telit is to acquire the cellular Internet of Things (IoT) business of French conglomerate Thales and sell off its automotive business.

Telit will incorporate the Thales cellular IoT products business and re-name as Telit Cinterion to create a leading IoT provider of hardware, software, and connectivity solutions.

Thales will receive a 25% stake in Telit Cinterion for its portfolio of cellular wireless communication modules, gateways, and data (modem) cards, ranging from 4G LTE, LPWAN to 5G. The Thales IoT business has 550 employees across 23 countries and services many of the world’s top brands. It generated sales of more than €300m in 2021.

The transaction is expected to close by the end of 2022, subject to entering a binding share transfer agreement, regulatory approvals and other customary closing conditions.

To sharpen focus on Industrial IoT, Telit Cinterion plans to spin off and manage separately the automotive IoT unit after closing.

“Innovation, scale and efficient IoT solutions are key for success. This transaction with Thales is arguably the most impactful one for Telit competitiveness,” said Paolo Dal Pino, Telit’s CEO. “While it will boost our ability to address customer needs more precisely from a richer portfolio, it will also enable us to deliver all new offerings derived from the experience, expertise, and the DNA of two companies that have made security and quality part of their brand promise from the very beginning.”

Telit was founded in Italy but opened its global headquarters in California last year after a deal to go private.

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