Telit Grabs Moto's M2M Unit to Gain Economies of Scale

Company Insight

On January 28, 2011 Telit Wireless Solutions and Motorola Solutions signed an agreement for Telit to acquire Motorola’s M2M modules business. This is the latest in a string of mergers and acquisitions activity in the M2M module market over the past several years that include Sierra Wireless’s purchase of Wavecom in February 2009, Gemalto's purchase of Cinterion in June 2010, and Novatel Wireless’s purchase of Enfora in December 2010. The consolidation underway in the industry reflects the increasing commoditization and price competitiveness that is being exacerbated by the entrance of APAC-based module vendors, such as Huawei, SIMcom Wireless Solutions, and ZTE. In addition, newer entrants in the United States, such as Fusion Wireless, are also achieving very low price points with innovative technology.

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