Vecima Sells Tracking Unit
Vecima Networks Sells Telematics Tracking Business to Lantronix for $16.5 Million
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Vecima Networks (TSX: VCM) has agreed to sell its Telematics mobile and fixed-asset tracking business to Lantronix for approximately $16.5 million CAD in an all-cash deal, according to Montreal Gazette. The sale includes the company's Nero Global Tracking software and is expected to close in the near term, subject to customary working capital adjustments.
Lantronix is a global provider of Edge AI and Industrial IoT solutions. The deal hands off a business unit that Vecima has operated since 2016, when it first added telematics to its portfolio, National Post reported.
What Vecima Is Selling and for How Much
The Telematics segment tracks mobile vehicles and fixed assets for customers. It also includes Nero Global Tracking, a software platform tied to the business. The sale price is roughly $16.5 million CAD. That figure may shift slightly based on working capital at the time of closing, Toronto Sun noted.
Vecima has held the Telematics business since 2016. Over nearly a decade, the unit built a reputation for innovation and strong customer relationships, according to The Province. The deal marks a clean exit from the segment via an all-cash transaction.
Lantronix Takes Over a Growing IoT Niche
Lantronix focuses on Edge AI and Industrial IoT — technologies that connect and manage physical devices at the network's edge. Adding Vecima's telematics assets fits squarely into that strategy. The acquisition gives Lantronix a ready-made customer base and proven tracking software, The Sudbury Star reported.
For the Telematics business itself, the sale opens a new chapter. Vecima said the move provides "opportunities for continued innovation, investment, and growth" under Lantronix's ownership. Lantronix has more resources dedicated to the IoT space to push the business forward.
Vecima Sharpens Focus After Shedding Telematics Unit
Shedding the Telematics segment lets Vecima concentrate on its core business. The company is primarily known for its video and broadband network technology. Selling a non-core unit for $16.5 million CAD frees up capital and management attention, according to Fort McMurray Today.
The transaction is structured as an asset sale rather than a share deal. That structure is common when buyers want specific operations without inheriting broader corporate liabilities. Closing is expected soon, with no major regulatory hurdles flagged, Chatham Daily News reported.
Timeline and Next Steps for the Transaction
Both companies expect the deal to close "in the near term." No specific date was given. The final price will be adjusted based on the working capital Vecima holds in the Telematics business at closing, according to Recorder.
Once closed, Lantronix will take full ownership of the tracking assets and the Nero Global Tracking platform. Vecima shareholders will see the cash proceeds flow back to the parent company. No details were shared on how Vecima plans to deploy the sale proceeds, Cold Lake Sun noted.
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