Wireless broadband solutions provider Novatel Wireless has agreed to acquire Enfora, a privately-held provider of wireless asset-management solutions and machine-to-machine (M2M) communications, for approximately $64.5 million in cash. The purchase price includes the pay down of all debt.
Additional consideration of up to $6 million, depending on certain performance targets being met, is also part of the deal.
Enfora, which essentially enables companies to access, analyze and leverage information from their distributed assets, had revenues of $61.3 million during the 12-month period ended September 30, 2010. Novatel Wireless says it expects the acquisition to be fully accretive to its non-GAAP earnings.
Enfora’s product portfolio consists of M2M solutions based on a distributed and customizable architecture that provides a link between an enterprise and its remote assets.
Novatel Wireless says the purchase of Enfora is aimed to diversify its customer base and product lines into adjacent markets and advancing the company’s strategy of providing intelligent devices to all end markets – enterprise, consumer, and vertical applications.
Mark Weinzierl, founder and CEO of Enfora, will become part of Novatel’s senior management team. Enfora, which was originally founded back in 1999, will operate as a Novatel Wireless business unit and the combined company will “leverage synergies” in product development, sales channels and other resources.