IoT specialist Trasna agreed to acquire u-blox’s loss-making cellular unit for an undisclosed sum, two months after the latter announced it was giving up on the segment in favour of products using other connectivity methods.

The deal comprises the vast majority of u-blox’s cellular IoT module business including IP, staff, sites and product portfolio. Trasna intends to retain all employees, operations and customers after completion, which is expected to take place in Q2. 

In its statement on the acquisition, Trasna explained the new assets would strengthen its IoT chip-to-cloud play for device manufacturers, pointing to an expanded reach in the metering, medical and industrial segments.  

Headquartered in the Republic of Ireland, Trasna offers a range of IoT-focused products and services including semiconductor design, SIM and eSIM hardware manufacturing, and device management software.  

Refocus
In January, u-blox revealed plans to “phase out” its cellular IoT after “efforts to find a viable path forward…did not pan out, including exploring a potential sale”, CEO Stephan Zizala said at the time.

The rationale for quitting the cellular segment was to focus on products using Wi-Fi, Bluetooth and satellite positioning technology.

In a statement today (17 March), Zizala described the divestment agreement as “ensuring a promising future for the cellular business unit”, while allowing his company to concentrate on its core business.

“We are confident that under Trasna’s leadership, the business will be well-positioned for success and we are pleased that our talented cellular team will have the opportunity to continue their work and drive innovation,” he added.