Novatel Wireless has agreed to sell its MiFi wireless hotspot business for $50 million cash.

The company, which is moving aggressively to regain profitability, made the announcement Sept. 22.

Novatel Wireless (Nasdad: MIFI) also said it planned to restructure by creating a new, publicly traded holding company with a new name.

TCL Industries Holdings of Hong Kong is the prospective buyer for the MiFi business. Shareholders and regulators would have to OK the sale. Novatel Wireless said it expects the transaction to close during the first quarter of 2017.

Novatel Wireless is trying to become a services business with recurring revenue.

Under previous CEO Alex Mashinsky, Novatel changed its ticker symbol to MIFI.

The company released an extended statement from CEO Sue Swenson, who is also chairwoman of the Novatel Wireless board.

“The sale of Novatel Wireless’s mobile broadband business to TCL is the most transformative event in Novatel Wireless’s history, and punctuates our period of metamorphosis,” she said.

“Upon the closing of the transaction with TCL, Novatel Wireless will no longer sell any products it sold at the beginning of 2015. We will have transitioned the company from a hardware-only business with approximately 80 percent of revenues tied to one customer into a predominantly SaaS [software as a service], services and solutions business with thousands of customers generating recurring revenues.

“Going forward, we will deepen our focus on our recurring revenue IoT [Internet of Things] solutions such as our Ctrack telematics solutions, including fleet management and asset tracking and monitoring, and our Feeney Wireless business connectivity solutions, such as our recently launched Ignite offering.”