Benzinga | Feb 25, 2021 06:43AM EST

Inseego Sells Ctrack South Africa Operations For $36.2M To Focus On 5G

* Inseego Corp (NASDAQ: INSG) inked an agreement to divest South African operations of Ctrack for an all-cash transaction of $36.2 million (ZAR 529 million) to an affiliate of Convergence Partners, an investment management firm focused on the technology, media, and telecom sector in Africa.

* "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 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," added Mondor.

* Inseego expects to close the transaction during the second quarter of 2021.

* Price action: INSG shares closed higher by 0.7% at $15.72 on Wednesday.