Inseego Completes Sale of Ctrack South Africa Operations

Rhea-AI Summary

Inseego Corp. (Nasdaq: INSG) has successfully sold its South African Ctrack telematics and asset tracking business to Convergence Partners for 528.9 million ZAR (approximately $36.6 million USD) in an all-cash deal. This divestiture aims to strengthen Inseego's cash position and refocus its efforts solely on the global 5G market. The company retains telematics operations in key markets like Europe and Australia, aligning with its 5G strategy. Inseego is committed to enhancing its 5G solutions and maintaining leadership in device-to-cloud offerings.

Positive

• Completion of the Ctrack business sale strengthens cash position.
• Focus on global 5G opportunities aligns with company strategy.
• Retained telematics business in key markets (Europe and Australia).

Negative

• None.

Inseego Corp. (Nasdaq: INSG), a leader of 5G and intelligent IoT device-to-cloud solutions, today announced the successful completion of the sale of its South African operations of its Ctrack telematics and asset tracking business to an affiliate of Convergence Partners, for a purchase price of 528.9 million South African Rand (ZAR) (approximately $36.6 million USD) in an all-cash transaction. The purchase price is subject to certain post-closing working capital adjustments.

“We are positioning Inseego as a pure-play 5G company and all of our efforts are now focused on the global 5G opportunity,” said Inseego Chairman and CEO Dan Mondor. “This divestiture will strengthen our cash position and enable Inseego to focus on key markets that are core to our 5G strategy. We are retaining our telematics and asset tracking business in markets that directly align with the Company’s 5G and enterprise initiatives, including Europe and Australia.”

About Inseego Corp.

Inseego Corp. (Nasdaq: INSG) is an industry leader in smart device-to-cloud solutions that extend the 5G network edge, enabling broader 5G coverage, multi-gigabit data speeds, low latency and strong security to deliver highly reliable internet access. Our innovative mobile broadband, fixed wireless access (FWA) solutions, and software platform incorporate the most advanced technologies (including 5G, 4G LTE, Wi-Fi 6 and others) into a wide range of products that provide robust connectivity indoors, outdoors and in the harshest industrial environments. Designed and developed in the USA, Inseego products and SaaS solutions build on the company’s patented technologies to provide the highest quality wireless connectivity for service providers, enterprises, and government entities worldwide. www.inseego.com #Putting5GtoWork

View source version on businesswire.com: https://www.businesswire.com/news/home/20210803005926/en/

FAQ

What is the recent sale announced by Inseego Corp. (INSG)?

Inseego Corp. announced the sale of its South African Ctrack telematics business to Convergence Partners for 528.9 million ZAR (approximately $36.6 million USD).

How does the Ctrack sale impact Inseego's business strategy?

The sale allows Inseego to strengthen its cash position and focus exclusively on the global 5G market.

What are Inseego's future plans after the sale of its Ctrack business?

Inseego plans to concentrate on key markets that align with its 5G strategy, retaining operations in Europe and Australia.

What is the purchase price for the Ctrack business sold by Inseego (INSG)?

The purchase price for the Ctrack business is 528.9 million South African Rand (approximately $36.6 million USD).