San Diego-based Novatel Wireless Inc. restructured its deal to acquire Oregon-based Feeney Wireless, offering details in a Jan. 11 securities filing. Feeney offers products and services for the Internet of Things.
The new deal, effective Jan. 5, calls for Novatel Wireless (Nasdaq: MIFI) to pay shareholders of Feeney parent RER Enterprises Inc. $15 million in cash over four years, in lieu of $15 million in stock to be issued in March.
Some $1.875 million cash will be paid March 15 and another $1.875 million will be paid on Sept. 15. Novatel Wireless will pay out $3.75 million on March 15 of 2017, 2018 and 2019.
Also modified was a schedule of earn-out payments.
Separately, Novatel made two announcements in early January. The Nevada Highway Patrol selected a Feeney Internet of Things solution for its communications needs. Also, the CTrack fleet tracking and telematics system from a second Novatel Wireless acquisition — DigiCore Holdings — helped authorities recover two fuel tankers valued at more than $1 million that had been stolen in South Africa.
