Acquisition of Simcom's cellular modem products, R&D team, and customer base.
We will grow into a major vendor supplying products across 2G, 3G, and 4G.

u-blox announced that it has entered into an asset transaction with Simtech Group Companies, through which it will acquire Simtech's cellular modem products (SIMCom Wireless), related patents and know-how, R&D and sales personnel, and associated customer base.

This acquisition is expected to solidify u-blox's position as a leading vendor offering products across 2G, 3G, and 4G. By acquiring SIMCom's product portfolio, u-blox will gain additional solutions and a wider range of pricing options, broadening its customer base and geographic reach.


▲ u-blox sales and EBIT

This will significantly expand u-blox's cellular module business in Asia, particularly China, and will also boost sales in Europe and the Americas. u-blox's larger business will ultimately provide the opportunity to integrate its recently announced cellular chip products into select modules within its portfolio.

Hong Kong-listed Simtech will sell its assets to u-blox for US$52.5 million. This acquisition, the largest in u-blox's history, is expected to increase u-blox's revenue by approximately US$75 million between Q2 and Q4 2017.

Additionally, u-blox's total revenue is expected to be approximately USD 500 million. The acquisition is subject to closing conditions and regulatory approvals, and must be completed within three months. The integration of the acquired assets into u-blox's Cellular Product Center is expected to increase the company's in-house R&D workforce by approximately 150 employees and expand its sales organization.