Novatel Acquires M2M Technology Specialist
San Diego’s Novatel Wireless (NASDAQ: NVTL), which provides high-speed wireless mobile hotspot devices, USB modems, and other wireless Internet access products, says today it is buying Enfora, a suburban Dallas provider of asset management technology.
Enfora says its intelligent asset-management systems use wireless technology and machine-to-machine (M2M) communications to analyze information from distributed assets. Novatel, which agreed to pay at least $64.5 million in cash at closing, had roughly $183 million in available cash and no debt at the end of September. (Novatel reported a loss of $7.1 million on $75.6 million in revenue in the third quarter that ended Sept. 30, and is on pace to generate more than $352 million in revenue this year.)
The market for M2M communications revenue is expected to grow at an annual compound rate of more than 22 percent over the next four years, according to data from ABI Research.
Enfora, which was founded in 1999 and has global operations, posted $61.3 million in revenue during the 12-month period that ended in September. Enfora’s founding CEO, Mark Weinzierl, will join Novatel’s senior management team. Novatel, which plans to operate Enfora as a subsidiary, says it expects the acquisition will be immediately accretive to its earnings on a non-GAAP (generally accepted accounting practices) basis.