Inseego Completes Sale of Telematics Business For $52 Million in Cash
Inseego Corp. (INSG) has completed the sale of its global telematics business to Ctrack Holdings for $52 million in cash. The transaction involves operations across the UK, EU, Australia, and New Zealand. The company has used part of the proceeds to fully repay the remaining $6 million balance under its Loan and Security Agreement. This strategic move allows Inseego to focus on its core 5G business while strengthening its financial position through debt reduction and recapitalization.
Inseego Corp. (INSG) ha completato la vendita della sua attività globale di telematica a Ctrack Holdings per 52 milioni di dollari in contanti. La transazione riguarda operazioni nel Regno Unito, nell'UE, in Australia e in Nuova Zelanda. L'azienda ha utilizzato parte del ricavato per rimborsare completamente il saldo residuo di 6 milioni di dollari ai sensi del suo Contratto di Prestito e Sicurezza. Questa mossa strategica consente a Inseego di concentrarsi sul suo core business 5G mentre rafforza la propria posizione finanziaria attraverso la riduzione del debito e la ricapitalizzazione.
Inseego Corp. (INSG) ha completado la venta de su negocio global de telemática a Ctrack Holdings por 52 millones de dólares en efectivo. La transacción involucra operaciones en el Reino Unido, la UE, Australia y Nueva Zelanda. La compañía ha utilizado parte de los ingresos para pagar por completo el saldo restante de 6 millones de dólares bajo su Acuerdo de Préstamo y Seguridad. Este movimiento estratégico permite a Inseego centrarse en su negocio principal de 5G mientras fortalece su posición financiera a través de la reducción de deudas y la recapitalización.
인시고 코퍼레이션 (INSG)는 Ctrack Holdings에 글로벌 텔레매틱스 사업을 현금 5200만 달러에 매각했습니다. 이 거래는 영국, EU, 호주 및 뉴질랜드에서의 운영을 포함합니다. 회사는 수익의 일부를 사용하여 대출 및 보안 계약에 따른 잔여 잔액 600만 달러를 전액 상환했습니다. 이 전략적 결정은 인시고가 핵심 5G 사업에 집중할 수 있게 하며, 부채 감소와 자본 재구성을 통해 재무 상태를 강화합니다.
Inseego Corp. (INSG) a achevé la vente de son activité mondiale de télématique à Ctrack Holdings pour 52 millions de dollars en espèces. La transaction concerne des opérations au Royaume-Uni, dans l'UE, en Australie et en Nouvelle-Zélande. L'entreprise a utilisé une partie des recettes pour rembourser intégralement le solde restant de 6 millions de dollars en vertu de son Accord de Prêt et de Sécurité. Ce mouvement stratégique permet à Inseego de se concentrer sur son activité principale 5G tout en renforçant sa position financière par la réduction de la dette et la recapitalisation.
Inseego Corp. (INSG) hat den Verkauf ihres globalen Telematikgeschäfts an Ctrack Holdings für 52 Millionen Dollar in bar abgeschlossen. Die Transaktion umfasst Aktivitäten im Vereinigten Königreich, der EU, Australien und Neuseeland. Das Unternehmen hat einen Teil der Erlöse verwendet, um den verbleibenden Saldo von 6 Millionen Dollar gemäß seinem Darlehens- und Sicherheitenvertrag vollständig zurückzuzahlen. Dieser strategische Schritt ermöglicht es Inseego, sich auf sein Kerngeschäft 5G zu konzentrieren, während es seine finanzielle Position durch Schuldenabbau und Rekapitalisierung stärkt.
- Received $52 million in cash from telematics business sale
- Full repayment of $6 million loan balance, reducing debt burden
- Strategic focus on core 5G business
- Divestiture of revenue-generating telematics business segment
Insights
The
The divestment of non-core international operations across multiple regions (UK, EU, Australia, NZ) streamlines the business model, potentially reducing operational complexity and overhead costs. This strategic pivot to focus exclusively on the domestic 5G market could improve profit margins and operational efficiency, though it does reduce geographic diversification. The transaction's all-cash nature provides immediate liquidity, important for a company in the capital-intensive 5G sector.
SAN DIEGO, Dec. 02, 2024 (GLOBE NEWSWIRE) -- Inseego Corp. (Nasdaq: INSG) (the “Company”), a technology leader in 5G mobile and fixed wireless solutions for mobile network operators, Fortune 500 enterprises, and SMBs, today announced the successful completion of the previously announced sale of its global telematics business for
“We are pleased to announce that the sale of our telematics business has been finalized, which will allow us to focus on our core 5G business,” said Philip Brace, Executive Chairman of Inseego. “We would like to thank the team members of the telematics business for their hard work and years of service to Inseego, and we wish them the best.”
The sale of the telematics business served two important purposes of allowing the Company to focus on driving growth in its core 5G domestic business and providing cash for the recapitalization and debt reduction that was executed. As part of that initiative, the Company used a portion of the proceeds from the sale of the telematics business to repay in full the remaining
About Inseego Corp.
Inseego Corp. (Nasdaq: INSG) is the industry leader in 5G Enterprise cloud WAN solutions, with millions of end customers and thousands of enterprise and SMB customers on its 4G, 5G, and cloud platforms. Inseego’s 5G Edge Cloud combines the industry’s best 5G technology, rich cloud networking features, and intelligent edge applications. Inseego powers new business experiences by connecting distributed sites and workforces, securing enterprise data, and improving business outcomes with intelligent operational visibility---all over a 5G network. For more information on Inseego, visit www.inseego.com. #Putting5GtoWork
©2024. Inseego Corp. All rights reserved. Inseego is a trademark of Inseego Corp. Other Company, product, or service names mentioned herein are the trademarks of their respective owners.
Media Relations Contact:
Inseego Corp.
Jodi Ellis
pr@inseego.com
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