By RTT News,
December 23, 2013, 02:55:00 AM EDT
(RTTNews.com) - Telit Communications Plc. (TCM.L), a wireless technology company, said Monday that its subsidiary, Telit Wireless Solutions Srl, has entered into an agreement with NXP B.V., a fully owned subsidiary of NXP Semiconductors N.V. ( NXPI ) to acquire NXP's Automotive Telematics Onboard unit Platform or ATOP business.
The consideration payable is $9 million to be settled by about $2 million in cash and up to 3.30 million Telit shares, subject to certain adjustments that will be made upon closing.
The acquisition of ATOP includes sales, engineering and support staff, to be integrated into Telit's automotive organization and will extend the Company's market reach with solutions leveraging the expanded engineering and sales expertise to better address Automotive and Telematics customers.
ATOP is an automotive grade solution for vehicle manufacturers enabling them, amongst other features, to implement telematics services like eCall, the European initiative to bring rapid assistance to motorists involved in a collision anywhere in the EU, on a single compact and cost efficient package, whilst reducing complexity and minimizing costs in vehicle designs.
Telit said it has agreed, subject to completion of appropriate due diligence, to appoint an individual from NXP's automotive business unit as a non-executive director of Telit on closing.
The transaction is expected to be closed during the first quarter of 2014.
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