In a move that doubled its IoT assets, Novatel Wireless announced March 30 that it bought Feeney Wireless for $26 million in cash and stock in order to further pursue the brand’s journey toward being the brand that offers the M2M industry the broadest, most comprehensive portfolio of product and execution. The deal also stipulates an additional $25 million in payments over four years, based on Feeney’s revenue and profit performance.
Founded in 1999, Feeney makes IoT products, performs systems integration and services for M2M executions. The company makes its bread and butter on cellular-based wireless IoT solutions, and it has a strong base of enterprise and government customers. It’s also got a 250,000 subscriber carrier SaaS (News - Alert)-based management platform.
“With this strategic combination, we create a new model positioning Novatel Wireless as a total IoT solutions and services leader, from hardware to SaaS to connectivity. This transaction creates a powerful engine for generating immediate and long-term value for our shareholders,” said Alex Mashinsky, CEO, Novatel Wireless (News - Alert). “[Feeney’s] recently released IoT application framework, Crossroads, is … already being deployed with key anchor customers.”
Including a solid and growing base of recurring revenue, Feeney Wireless plans to generate at least $38 million in revenue in 2015. To listen to the announcement, click here.
Edited by Dominick Sorrentino
Edited by Ken Briodagh