US-based machine-to-machine (M2M) solutions provider Novatel Wireless has made a bid to buy out South African telematics supplier Digicore Holdings.
The two companies have published the firm intention from Novatel to make an offer to acquire (either itself or through a subsidiary) all the ordinary shares in Digicore, other than any Ordinary Shares held by any subsidiaries of Digicore and the ordinary shares held by the Digicore Holdings Limited Share Trust.
Novatel designs and develops M2M wireless solutions based on 3G and 4G technologies. It delivers Internet of Things (IoT) and cloud SaaS services to carriers, distributors, retailers, OEMs and vertical markets worldwide. Product lines include MiFi Mobile Hotspots, USB modems, Expedite and Enabler embedded modules, mobile tracking solutions and asset tracking solutions.
Novatel is incorporated in the state of Delaware, US, and its headquarters are in San Diego, California. The company is listed on the NASDAQ exchange.
Digicore specialises in the research, development, manufacturing, sales and marketing of telematics tools used for fleet management and consumer and enterprise-level vehicle tracking for an international client base.
Novatel believes that its acquisition of Digicore would establish Novatel’s position as a significant player in the global asset tracking and management market, and would provide immediate top-line contribution and meaningful earnings contribution in 2016.
Once the transaction is completed, Digicore will become a subsidiary of Novatel.