Telular to buy SkyBitz for $42 million
CHICAGO—Wireless technology company Telular Corp. said Monday that it agreed to buy SkyBitz Inc. for $42 million in cash and stock to expand its mobile business and grow its customer base.
SkyBitz provides mobile resource management tools for tracking and managing truck trailers, rail cars, containers and other equipment. The $42 million purchase price consists of $35 million in cash and $7 million of newly issued stock. Telular said it plans to finance the cash portion with a $30 million five-year bank loan and cash on hand.
The deal is expected to close in the next 60 to 90 days. Telular expects the acquisition to increase its 2012 adjusted earnings.
SkyBitz expects to revenue of $35 million in 2011. Telular said SkyBitz's employees will continue to work from their offices in the Washington, D.C., area and the company's president and CEO, Homaira Akbari, will stay on as president.