Benzinga | Feb 24, 2021 04:18PM EST

Inseego Announces Sale of Ctrack South Africa Operations For ~$36.2M In Cash

Repositions Company as a Pure Play 5G Solutions Provider

SAN DIEGO--(BUSINESS WIRE)-- Inseego Corp. (NASDAQ:INSG), a leader in 5G and intelligent IoT device-to-cloud solutions, today announced it has entered into a definitive agreement under which an affiliate of Convergence Partners ("Convergence"), an investment management firm focused on the technology, media and telecom sector in Africa, will acquire the South African operations of Ctrack for approximately 529 million South African Rand (ZAR) (approximately $36.2 million USD based on an exchange rate of 14.62 ZAR to USD) in an all-cash transaction.

"The sale of our South African Ctrack operations is part of Inseego's strategy to focus solely on target markets that are closely aligned with the growth of our 5G business," said Inseego Chairman and CEO Dan Mondor. "The proceeds further strengthen our balance sheet and increases liquidity to address our growing 5G pipeline.

"The geographical alignment of all our business units is one of the final steps in the remaking of Inseego into a 5G pure play. We believe the telematics business is an important anchor for both our 5G and our enterprise initiatives going forward. Retaining critical infrastructure, headcount and customer relationships in the Ctrack international markets directly aligns with our 5G initiatives."

The transaction is subject to receipt of regulatory approvals and other closing conditions and is expected to close during the second quarter of 2021. The initial purchase price is subject to various working capital and other customary adjustments.