u-blox acquires SIMCom cellular modules

Swiss module manufacturer u-blox has announced an asset deal with Shanghai-based SimTech Group that will give u-blox control over the company’s cellular modem products (known as SIMCom Wireless), patents and know-how, R&D and sales staff, and customer base. The assets will be integrated into u-blox’s cellular product centre and help to expand the company’s R&D capacity by 150 specialists, as well as enlarge its sales organisation.

The US$52.5 million deal significantly expands u-blox’s existing cellular product range, making it a major supplier of cellular modules worldwide. By widening the Swiss company’s customer base and increasing its geographical reach, the deal is expected to increase u-blox’s cellular module business in Asia (primarily China) and generate increased revenue in Europe and America. The larger scale will also provide the eventual opportunity to incorporate u-blox’s cellular chips into select modules in the combined portfolio.

Representing u-blox’s biggest acquisition to date, the deal is expected to increase the company’s revenues by ~US$75 million for the remaining three quarters of 2017, taking total revenues to US$500 million. The acquisition should be completed within three months, with all SIMCom’s existing products set to remain available under the SIMCom brand name.