VICTORIA, British Columbia, July 8 — Vecima Networks Inc. (TSX: VCM) has announced an agreement to sell the assets of its Telematics mobile and fixed-asset tracking segment, including its Nero Global Tracking software (the “Telematics Business”), to Lantronix, Inc. (“Lantronix”), a global provider of Edge AI and Industrial IoT solutions that delivers intelligent computing, secure connectivity, and remote management for mission-critical applications.
Proceeds from the all-cash transaction are expected to be approximately $16.5M CAD, subject to customary working capital adjustments. The purchase price includes $14.5M CAD payable at closing and an additional $2.0M CAD payable by year-end 2026. The transaction represents an asset sale and is expected to close in the near term, subject to customary closing conditions.
The Telematics Business has been a part of Vecima since 2016, establishing a strong reputation for innovation, trusted customer relationships, and reliable fleet management solutions. The sale to Lantronix marks an exciting next chapter for the business, providing expanded opportunities for continued innovation, investment, and growth.
“The Telematics Business has been an important part of Vecima’s history for many years, and we are incredibly proud of what the team has built,” said Sumit Kumar, President & CEO of Vecima Networks, Inc. “We want to sincerely thank Lindsay Ryerson and his dedicated team for their innovation and commitment to our customers over the years. Their many contributions have helped establish a highly respected business with differentiated technology and long-standing customer relationships.”
“We are excited to see the Telematics Business join Lantronix, where its products, customers, and employees will have the opportunity to continue growing as part of an organization with a strong strategic focus in Industrial IoT and Edge AI,” Mr. Kumar continued.
“For Vecima, this transaction further sharpens our focus on the opportunities ahead in our core broadband access and video platforms. We are seeing increasing visibility into customer demand driven by large-scale network deployment programs, fiber expansion, DOCSIS® evolution, and the growing need for AI-enabled broadband infrastructure,” added Mr. Kumar. “With a strengthened balance sheet and a clear strategic focus, we are well-positioned to accelerate growth, expand our software business, and continue delivering innovative broadband and video solutions for our customers.”