Inseego Corp. completes $52 million sale of telematics business to Ctrack Holdings, focusing on core 5G solutions.
Quiver AI Summary
Inseego Corp. announced the successful sale of its global telematics business to Ctrack Holdings for $52 million in cash. This divestiture allows Inseego to concentrate on its core 5G business and provides funds for recapitalization and debt reduction. A portion of the sales proceeds was used to fully repay a $6 million loan. Executive Chairman Philip Brace expressed gratitude to the telematics team for their contributions while emphasizing the strategic shift towards strengthening Inseego's focus on advanced 5G solutions aimed at mobile network operators and enterprises.
Potential Positives
- The successful sale of the telematics business for $52 million enhances Inseego's financial position and liquidity.
- The divestiture allows Inseego to concentrate on its core 5G business, potentially leading to increased growth and innovation in that sector.
- Utilizing proceeds from the sale to fully repay a $6 million debt improves the company's balance sheet and reduces financial obligations.
Potential Negatives
- The divestiture of the telematics business may indicate that Inseego is struggling to maintain its market presence in multiple sectors, raising concerns about the long-term viability of diversifying its product offerings.
- The sale, although providing cash for debt reduction, highlights a reliance on asset sales to improve financial health, which could signal underlying financial instability.
- The company is pivoting to focus on its core 5G business, which may expose it to higher risks and market pressures within a competitive telecommunications landscape.
FAQ
What is Inseego Corp.'s recent business transaction?
Inseego Corp. has successfully sold its global telematics business for $52 million in cash to Ctrack Holdings.
How will this sale benefit Inseego Corp.?
The sale allows Inseego to focus on its core 5G business and provides funds for debt reduction and recapitalization.
Who is the buyer of Inseego's telematics business?
The telematics business was acquired by Ctrack Holdings, a portfolio company of Convergence Partners.
What regions did Inseego's telematics business operate in?
Inseego's telematics business operated in the UK, EU, Australia, and New Zealand.
What will Inseego focus on after this sale?
Inseego plans to concentrate on driving growth in its core 5G domestic business following the sale.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$INSG Insider Trading Activity
$INSG insiders have traded $INSG stock on the open market 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $INSG stock by insiders over the last 6 months:
- PHILIP G BRACE (Executive Chairman) purchased 10,000 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$INSG Hedge Fund Activity
We have seen 49 institutional investors add shares of $INSG stock to their portfolio, and 20 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- AVIVA HOLDINGS LTD. added 1,303,314 shares (+inf%) to their portfolio in Q3 2024
- BRASLYN LTD. added 761,483 shares (+inf%) to their portfolio in Q3 2024
- MARSHALL WACE, LLP added 232,231 shares (+297.2%) to their portfolio in Q3 2024
- ARROWSTREET CAPITAL, LIMITED PARTNERSHIP added 152,681 shares (+inf%) to their portfolio in Q3 2024
- SUSQUEHANNA INTERNATIONAL GROUP, LLP added 67,236 shares (+inf%) to their portfolio in Q3 2024
- EAM INVESTORS, LLC added 59,763 shares (+inf%) to their portfolio in Q3 2024
- CUBIST SYSTEMATIC STRATEGIES, LLC added 48,546 shares (+inf%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
SAN DIEGO, Dec. 02, 2024 (GLOBE NEWSWIRE) -- Inseego Corp. (Nasdaq: INSG) (the “Company”), a technology leader in 5G mobile and fixed wireless solutions for mobile network operators, Fortune 500 enterprises, and SMBs, today announced the successful completion of the previously announced sale of its global telematics business for $52 million dollars (USD) in an all-cash transaction to Ctrack Holdings, a portfolio company of Convergence Partners. The transaction involves the divestiture of Inseego’s telematics business that operates across the United Kingdom, the European Union, Australia and New Zealand.
“We are pleased to announce that the sale of our telematics business has been finalized, which will allow us to focus on our core 5G business,” said Philip Brace, Executive Chairman of Inseego. “We would like to thank the team members of the telematics business for their hard work and years of service to Inseego, and we wish them the best.”
The sale of the telematics business served two important purposes of allowing the Company to focus on driving growth in its core 5G domestic business and providing cash for the recapitalization and debt reduction that was executed. As part of that initiative, the Company used a portion of the proceeds from the sale of the telematics business to repay in full the remaining $6 million balance due under Loan and Security Agreement, dated June 28, 2024, among the Company, South Ocean Funding, LLC, certain participant lenders and certain subsidiaries of the Company.
About Inseego Corp.
Inseego Corp. (Nasdaq: INSG) is the industry leader in 5G Enterprise cloud WAN solutions, with millions of end customers and thousands of enterprise and SMB customers on its 4G, 5G, and cloud platforms. Inseego’s 5G Edge Cloud combines the industry’s best 5G technology, rich cloud networking features, and intelligent edge applications. Inseego powers new business experiences by connecting distributed sites and workforces, securing enterprise data, and improving business outcomes with intelligent operational visibility---all over a 5G network. For more information on Inseego, visit www.inseego.com. #Putting5GtoWork
©2024. Inseego Corp. All rights reserved. Inseego is a trademark of Inseego Corp. Other Company, product, or service names mentioned herein are the trademarks of their respective owners.
Media Relations Contact:
Inseego Corp.
Jodi Ellis
[email protected]
