Telit Secures 16 million Investment

David Murphy

M2M (machine-to-machine) specialist Telit Wireless Solutions and the global electronics service provider Bartolini After Market Electronics Services (BAMES) have concluded a business alliance consisting of a strategic manufacturing agreement and a 16 million (10.9 million) capital investment by BAMES. Both agreements will enable Telit to continue the roll-out of its global strategy, which is focused on the rapidly-growing M2M market, and consolidating its international expansion. It will also help Telit to continue its activities developing next-generation M2M modules.
A key component of the alliance is a strategic manufacturing agreement with Services for Electronic Manufacturing (SEM), the electronics manufacturing subsidiary of BAMES based in Vimercate, Italy. SEM will take over the present and future production of Telits M2M modules at competitive market prices for a term of not less than five years. This will enable Telit to focus its European manufacturing in one geographical location. In addition, it will streamline operations while keeping control of the companys intellectual property and increasing its control over its supply chain.
We will benefit greatly from this agreement says Telit President, Dominikus Hierl. Consolidating our manufacturing will help us to respond more efficiently to customer requests.
The 16 million capital injection by consists of 9 million in equity now, with an additional 7 million in December 2008, providing Telit meets certain M2M module purchase milestones. Telit will use the money to further expand its research and development efforts.