u-blox will be acquiring Shanghai-based SIMCom Wireless's cellular modem products, R&D team and customer base for $52.5 million. This acquisition will expand the u-blox cellular product range and make it one of the world’s largest suppliers of cellular modules.
The acquisition firmly establishes u-blox as a leader for a range of 2G, 3G and 4G products and creates new economies of scale. 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 will significantly increase the cellular module business in Asia, primarily China, and generates increased revenue in Europe and America. The larger outreach will also provide the eventual opportunity to incorporate the recently announced u-blox cellular chips into select modules in the combined portfolio.
Listed on the Hong Kong stock exchange, SimTech Group Company Ltd. will sell the assets included in the deal to u-blox for USD 52.5 million in cash. The Swiss company’s biggest acquisition to date should increase revenues by approx. USD 75 million for the remaining three quarters of 2017, taking total revenues to the half-billion USD mark. Following fulfilment of closing conditions and regulatory approvals, the acquisition should be completed within three months. The assets will be integrated into u-blox’s cellular product center and help to expand the company’s R&D capacity by 150 specialists, and enlarge the sales organization. All existing SIMCom products will remain available under the SIMCom brand name.
