connectBlue acquired by u-blox

Key applications include industrial machine-to-machine (M2M), medical equipment, data acquisition, vehicle monitoring and asset tracking systems. connectBlue’s operations in Malmö will become the new product centre for short range radio. For existing connectBlue customers the current product offering will continue to be supported and further developed.

The acquisition entails purchase of 100% of the shares of connectBlue AB for an enterprise value of SEK 185m (CHF 25m). For the acquired business u-blox expects revenue of around CHF 9 million and an EBIT of CHF 1m for the remainder of 2014. The guidance is updated accordingly to revenues of CHF 264-275m and EBIT of CHF 35-39m.

“This merger with u-blox gives our customers a rich choice of highly-reliable, industrial-grade wireless connectivity solutions to the last mile as well as to the last meter. Our combined portfolio provides a lower-cost and more reliable alternative to cable, copper and fibre used in factories, vehicles and outdoor installations. We are excited to join forces with u-blox to help build a wireless world," commented Rolf Nilsson, CEO, connectBlue.

Thomas Seiler, CEO, u-blox, added: “The Internet of Things requires end-to-end connectivity to allow powerful applications to manage mission- and business-critical devices such as health monitoring and point of sales terminals, factory automation and vehicle sensors. connectBlue’s short range radio technology combined with our comprehensive line of cellular modems and satellite positioning receivers allow us to provide a complete communication solution for thousands of existing and future applications. We are very pleased to work with our new colleagues in Sweden to build on the deep synergies between our businesses.”