SAN DIEGO--(BUSINESS WIRE)--
In connection with Inseego Corp.'s (Nasdaq: INSG) proposed sale of
Novatel Wireless, Inc. ("Novatel Wireless"), including its MiFi® mobile
broadband business, to Jade Ocean Global Limited, a subsidiary of T.C.L.
Industries Holdings (H.K.) Limited ("TCL"), on April 24, 2017, the
parties voluntarily withdrew and re-filed the Joint Voluntary Notice
("JVN") that they had previously submitted to the Committee on Foreign
Investment in the United States ("CFIUS") under the Defense Production
Act of 1950. This action is intended to provide additional time for the
parties and CFIUS to seek a definitive mitigation agreement that would
enable CFIUS to approve the transaction.
While the parties and CFIUS have been working for more than three months
to reach a negotiated agreement, a conclusion to the process has not yet
been reached. Accordingly, with CFIUS's consent, for the second time
since the review process commenced, the parties have withdrawn and
re-filed in order to initiate a new period of review.
In the event that the sale of Novatel Wireless to TCL is not permitted
by the U.S. government, the Company would need to consider all other
strategic alternatives available to it with respect to the MiFi mobile
broadband business, including other divestiture opportunities.
"We remain hopeful that the sale of the MiFi business to TCL can be
completed. However, in the event that the transaction is suspended or
prohibited by the U.S. government, Inseego will be compelled to pursue
other strategic alternatives with respect to the MiFi business," said
Sue Swenson, Chief Executive Officer of Inseego. Ms. Swenson also said,
"I believe Inseego has a bright future focused on our SaaS solutions for
the Internet of Things, including our Ctrack-branded fleet management
and vehicle telematics products, as well as our business connectivity
and device management services."
Nicolas Zibell, Chief Executive Officer of TCL Communication, added, "If
permitted to close this acquisition by U.S. governmental authorities, we
remain committed to finalizing this important and exciting transaction
for TCL, and increasing our presence, business and employee base within
the United States."
About Inseego Corp.
Inseego Corp. (Nasdaq: INSG) is a leading global provider of
software-as-a-service (SaaS) and solutions for the Internet of Things
(IoT). The Company sells its telematics solutions under the Ctrack
brand, including its fleet management, asset tracking and monitoring,
stolen vehicle recovery, and usage-based insurance platforms. Inseego
Corp. also sells business connectivity solutions and device management
services through Novatel Wireless, Inc. and Feeney Wireless (FW).
Inseego Corp. has over 30 years of experience providing customers with
secure and insightful solutions and analytics, with approximately
620,000 global subscribers, including 187,000 fleet management
subscribers. The Company is headquartered in San Diego, California. www.inseego.com
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute forward-looking
statements. These forward-looking statements relate to a variety of
matters, including, without limitation, statements regarding the timing
and likelihood of the consummation of the proposed sale of Novatel
Wireless, Inc. (the "Sale") and conditions precedent to consummating the
proposed Sale. These forward-looking statements are made on the basis of
the current beliefs, expectations and assumptions of the management of
the Company and are subject to significant risks and uncertainty.
Investors are cautioned not to place undue reliance on any such
forward-looking statements. All such forward-looking statements speak
only as of the date they are made, and the Company undertakes no
obligation to update or revise these statements, whether as a result of
new information, future events or otherwise, except as may be required
by law. These forward-looking statements involve many risks and
uncertainties that may cause actual results to differ materially from
what may be expressed or implied in these forward-looking statements.
For example, there can be no assurance that CFIUS will approve the sale
of Novatel Wireless to TCL. The consummation of the proposed Sale is
subject to a number of closing conditions, including absence of
governmental restrictions, and the failure to satisfy any one of these
conditions could result in the transaction not closing. For a further
discussion of risks and uncertainties that could cause actual results to
differ from those expressed in these forward-looking statements, as well
as risks relating to the business of Inseego Corp. in general, see the
risk disclosures in our Annual Report on Form 10-K for the year ended
December 31, 2016, and in other subsequent filings made with the SEC by
Inseego Corp. (available at www.sec.gov).
View source version on businesswire.com: http://www.businesswire.com/news/home/20170424005746/en/
Media Relations Contact:
Melissa Gardner, (858)
Michael Sklansky, (858) 431-0792
Source: Inseego Corp.
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