u-blox acquires connectBlue; adds Wi-Fi and Bluetooth connectivity

THALWIL, Switzerland and MALMO, Sweden, May 19, 2014 /PRNewswire/ -- Swiss based u-blox (SIX: UBXN) announces the acquisition of Swedish connectBlue AB, an established provider of industrial-grade short range radio modules. These products support industry standards Bluetooth and IEEE 802.11 / Wi-Fi that enable the last hundreds of meters of connectivity between equipment and the internet.

The acquisition greatly enhances the u-blox portfolio of positioning and cellular wireless communications solutions with short range communication products. This strategic move broadens the u-blox module offering bringing within reach millions of devices connected to the internet. Key applications include industrial machine-to-machine (M2M), medical equipment, data acquisition, vehicle monitoring and asset tracking systems.

"The Internet of Things requires end-to-end connectivity to allow powerful applications to manage mission- and business-critical devices such as health monitoring and point of sales terminals, factory automation and vehicle sensors," said Thomas Seiler, u-blox CEO. "connectBlue's short range radio technology combined with our comprehensive line of cellular modems and satellite positioning receivers allow us to provide a complete communication solution for thousands of existing and future applications. We are very pleased to work with our new colleagues in Sweden to build on the deep synergies between our businesses."

"This merger with u-blox gives our customers a rich choice of highly-reliable, industrial-grade wireless connectivity solutions to the last mile as well as to the last meter," said Rolf Nilsson, connectBlue CEO. "Our combined portfolio provides a lower-cost and more reliable alternative to cable, copper and fiber used in factories, vehicles and outdoor installations. We are excited to join forces with u-blox to help build a wireless world."

Established in 2000, connectBlue has a market-proven portfolio of certified, industrial grade modules supporting popular Classic Bluetooth, Bluetooth low energy, and Wi-Fi standards. Their robust and high performance products guarantee long-term compatibility across product generations and technologies. The company has an impressive list of global customers producing medical instrumentation, equipment for industrial automation, measurement, data acquisition, and vehicle management systems.

The company has its own in-house Bluetooth stack and software drivers for Wi-Fi modules, critical intellectual property that makes its products extremely reliable in demanding applications.

connectBlue's operations in Malmo will become the new product center for short range radio. For existing connectBlue customers the current product offering will continue to be supported and further developed.

The acquisition entails purchase of 100% of the shares of connectBlue AB for an enterprise value of SEK 185 million (CHF 25 million). For the acquired business u-blox expects revenue of around CHF 9 million and an EBIT of CHF 1 million for the remainder of 2014. The guidance is updated accordingly to revenues of CHF 264 – 275 million and EBIT of CHF 35 – 39 million.

A supplementary slide presentation can be downloaded here in PDF format.

PDF version (English, German)

About u-blox
Swiss-based u-blox (SIX:UBXN) is a leading provider of wireless and positioning semiconductors and modules for the automotive, industrial and consumer markets. Our solutions enable people, vehicles and machines to locate their exact position and wirelessly communicate via voice, text or video. With a broad portfolio of chips, modules and software solutions, u-blox is uniquely positioned to allow OEMs to develop innovative solutions that enable mobility quickly and cost-effectively. With headquarters in Thalwil, Switzerland, u blox is globally present with offices in Europe, Asia and the USA.

(www.u-blox.com)

About connectBlue
connectBlue® is a leading provider of reliable wireless solutions for the last hundreds of meters of connectivity. The robust and high performing products are designed and tested for demanding industrial, medical, measurement / data acquisition and quality assurance applications. Based on Classic Bluetooth, Bluetooth low energy, Wi-Fi (WLAN) and Multiradio solutions, connectBlue develops wireless system-on-modules, wireless ready-to-embed modules as well as wireless ready-to-use Serial / Ethernet Port Adapters and Access Points. The connectBlue products are radio type approved for the European, US, Canadian, Japanese markets as well as are compliant with EMC, Safety and Medical standards, and the Bluetooth qualification program. connectBlue is located in Malmo, Sweden. For more information, please visit www.connectblue.com.

Disclaimer

This release contains certain forward-looking statements. Such forward-looking statements reflect the current views of management and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the u-blox Group to differ materially from those expressed or implied. These include risks related to the success of and demand for the Group's products, the potential for the Group's products to become obsolete, the Group's ability to defend its intellectual property, the Group's ability to develop and commercialize new products in a timely manner, the dynamic and competitive environment in which the Group operates, the regulatory environment, changes in currency exchange rates, the Group's ability to generate revenues and profitability, and the Group's ability to realize its expansion projects in a timely manner. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this report. u-blox is providing the information in this release as of this date and does not undertake any obligation to update any forward-looking statements contained in it as a result of new information, future events or otherwise.

This press release is published in German and English. Should the German translation differ from the English original, the English version is binding.

SOURCE u-blox