IoT Giant u-blox Prepares to Go Private Again, Agrees to a $1.3 Billion Private Equity Buyout

Private equity group Advent International has announced a $1.3 billion deal to acquire global navigation satellite system (GNSS), wireless communication, and embedded electronics specialist u-blox — offering more than half again its average share price over the last six months to tempt shareholders into accepting the buyout offer.

"u-blox is a recognized leader in high-performance positioning and short-range communication technology solutions," says Advent's Ronald Ayles of the acquisition offer. "We are excited about the opportunity to partner with the u-blox management team and co-founders, and support this innovative technology champion through its next chapter of growth. We are deeply committed to invest in the long-term success of u-blox, using our extensive experience and resources in automotive and industrial end-markets to accelerate innovation and expand its global reach. Advent has a long and successful track record of partnering with founders and management teams to deliver sustainable value creation."

"We believe this transaction represents a highly attractive opportunity for our shareholders, customers and employees because it enables u-blox to pursue its long-term strategic objectives with greater flexibility, backed by a strong and experienced financial partner," claimed André Müller and Stephan Zizala, u-blox chair and chief executive officer respectively, of the offer. "Advent shares our vision for the company's future, and we are excited about its intention to support and accelerate our growth and innovation pipeline."

Founded by Zizala and Müller in 1997 as a spin-off from the Swiss Federal Institute of Technology in Zurich, u-blox is best known for its affordable and accessible modules that combine microcontrollers, wireless connectivity, and multi-constellation global navigation satellite system (GNSS) receivers. Its communications products have also ensured it a slice of the Internet of Things (IoT) market — and the company recorded a net profit of SFr101.8 million (around $126 million) in 2021.

The deal values u-blox at a little over 150% of its averaged share price from the last six months, and has had the company's board unanimously recommend its acceptance — with the company's biggest single shareholder, SEO Master Fund LP at around nine per cent, committing to offer up its slice for acquisition.

The all-cash deal will require the usual regulatory approvals, and is expected to close within the next six months — after which u-blox, which floated as a public company in 2007, will be delisted from the SIX Swiss Exchange. Neither Advent or u-blox has commented on what the acquisition will mean for the company's 850 employees.

Documents detailing the terms of the offer are available at www.zenith-offer.com.