Proving the Business Case for the Internet of Things

Telit launches automotive business following NXP deal

Iain Morris
April 9, 2014

Telit has launched a new automotive business unit following its takeover of a platform business from Dutch company NXP Semiconductors.

The UK-headquartered hardware player says it has now completed the acquisition of NXP’s (Eindhoven, Netherlands) automotive telematics on-board unit platform (ATOP) business, which develops technology allowing vehicle makers to implement eCall or similar functionality in a straightforward and cost-efficient way.

The new automotive unit – branded Telit Automotive Solutions – is to focus solely on the automotive OEM and Tier One markets, says the company, and will be led by Dominikus Hierl, previously Telit’s chief marketing officer.

Telit (London, UK) says it will being integrating the ATOP business – including sales, engineering and support staff – into Telit Automotive Solutions now the deal has concluded.

According to Telit, the ATOP business maintains one of the industry’s largest product portfolios for the automotive sector, with particular emphasis on advanced technologies like LTE and HSPA+.

Lars Reger, head of chip development and general manager for new business in NXP’s automotive business division, is set to become a non-executive director of Telit.

Citing various industry analysts, Telit reckons the automotive sector will be the fastest-growing M2M sector over the next few years, with forecasts from ABI Research indicating that module shipments to this market will grow from six million in 2013 to 30 million in 2018.

One reason for the projected growth is the boost the automotive sector is receiving from regulatory initiatives in various parts of the world, including eCall in Europe, ERA GLONASS in Russia and DENATRAN 245 in Brazil.

“This acquisition will take the ATOP technology to the next level, by embedding it in a sustainable ecosystem for innovative and high-quality automotive solutions,” said Reger. “We’re confident that our expertise will continue to grow under Telit’s leadership in combination with continued cooperation from NXP.”

Speaking about the prospects for Telit Automotive Solutions, Hierl said NXP’s multi-service-capable platform would provide support for a range of features, including vehicle location and tracking, remote starting and diagnostics, as well as business applications like fleet management.
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