Additional Time Provided to Finalize Mitigation Agreement
SAN DIEGO--(BUSINESS WIRE)--
Inseego Corp. (successor issuer to Novatel Wireless, Inc.) (Nasdaq:
INSG) (the "Company"), a leading global provider of solutions for the
Internet of Things (IoT), including software-as-a-service (SaaS), today
announced that in connection with its proposed sale (the "Sale") of
Novatel Wireless, Inc. ("Novatel Wireless") to T.C.L. Industries
Holdings (H.K.) Limited and Jade Ocean Global Limited ("Purchasers", and
together with the Company and Novatel Wireless, the "Parties"), the
Parties have voluntarily withdrawn and re-filed the Joint Voluntary
Notice ("JVN") that they had previously submitted to the Committee on
Foreign Investment in the United States ("CFIUS" or the "Committee")
under the Defense Production Act of 1950 in order to provide additional
time for the Parties and the Committee to finalize the terms of a
definitive mitigation agreement.
The Parties and the Committee have been working cooperatively to
finalize the terms of a National Security Agreement ("NSA"). However,
due in part to government personnel changes resulting from the recent
change of Presidential administrations, the Committee and the Parties
were unable to complete and execute the NSA within the time remaining in
the initial investigation period. Accordingly, with CFIUS's consent, the
Parties withdrew and re-filed the JVN, which will initiate a new period
of review under the regulations. During the renewed period, the Company
expects that the Parties and CFIUS will diligently and in good faith
negotiate to finalize a definitive mitigation agreement.
The Company still expects the closing of the Sale to occur in the first
quarter of 2017, subject to the timing and successful completion of the
CFIUS process and assuming satisfaction or waiver of all other
applicable conditions.
Said Sue Swenson, CEO of Inseego, "I am encouraged by the progress we
have made with the Committee in this review, and we appreciate the
efforts the Committee has made to diligently work with us towards a
successful outcome."
Added Vittorio Di Mauro, Business Unit Director at TCL, "We remain
committed to working to reach an agreement with CFIUS and finalize this
important and exciting transaction for TCL."
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
590,000 global subscribers, including 182,000 fleet management
subscribers. The Company is headquartered in San Diego, California. www.inseego.com
Twitter @inseego
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 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 a definitive mitigation agreement, or NSA, with CFIUS will be
executed. The consummation of the proposed Sale is subject to a number
of closing conditions, including approval by CFIUS, 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, 2015, and in other
subsequent filings made with the SEC by Novatel Wireless, Inc. and
Inseego Corp. (available at www.sec.gov).
View source version on businesswire.com: http://www.businesswire.com/news/home/20170203005141/en/
Inseego Corp.
Media Relations:
Diana Hoogbruin, 858-812-0659
dhoogbruin@nvtl.com
or
Investor
Relations:
Michael Sklansky, 858-431-0792
msklansky@nvtl.com
Source: Inseego Corp.
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