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u-blox Buys Shanghai-based Cellular Module Maker SIMCom Wireless

u-blox Buys Shanghai-based Cellular Module Maker SIMCom Wireless Image Credit: u-blox

u‑blox, a global leader in wireless and positioning modules and chips, recently announced a deal with Shanghai‑based SimTech Group that will give u‑blox control over the company’s cellular modem products, SIMCom Wireless. Listed on the Hong Kong stock exchange, SimTech Group will sell the assets included in the deal to u‑blox for USD 52.5 million in cash.

The deal which includes patents, knowhow, R&D, sales staff and customer base, is expected to significantly expand u‑blox’s existing cellular product range and makes it a major supplier of cellular modules worldwide. The deal will also significantly increase u-blox's cellular module business in Asia, primarily China, and generates increased revenue in Europe and America. 

It will also establishe 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. 

With the Swiss company’s biggest acquisition to date, the company is projected to increase revenues by approx. USD 75 million for the remaining 3 quarters of 2017, taking total revenues to the half‑billion USD mark.

Author

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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