Novatel Wireless today announced plans to divest its mobile broadband business.
The company has agreed to sell its MiFi branded hotspots and USB modem product lines to Hong Kong-based TCL Industries Holdings for $50 million in cash.
Novatel was an early player in mobile internet products and provided modems for the Palm Pilot and other fledgling smartphones. The company later branched out into USB- and WiFi-based mobile hotspots.
Novatel said it wants to focus on generating recurring revenue IoT solutions, rather than hardware sales. Some of its IoT business lines include Ctrack telematics, fleet management, asset tracking and monitoring, and Feeney Wireless business connectivity solutions.
The deal is subject to customary closing conditions, but the firms expect to complete the transaction during the first quarter of 2017.
