In an asset deal worth USD 52.5m, u-blox (SIX: UBXN) is acquiring Shanghai-based SIMCom Wireless´s cellular modem products, R&D team and customer base, the company said.
The acquisition of SIMCom´s product portfolio offers additional solution options and price points which will widen u-blox´s customer base and increase its geographical reach.
The deal increases the cellular module business in Asia, primarily China, and generates increased revenue in Europe and America. The larger scale will also provide the eventual opportunity to incorporate the recently announced u-blox´s cellular chips into select modules in the combined portfolio.
All SIMCom´s existing products will remain available under the SIMCom´s brand name.