Novatel Wireless today disclosed plans to acquire M2M outfit Enfora (News - Alert) for approximately $64.5 million in cash. The deal is intended to diversify Novatel’s customer base and product lines in M2M markets, including health care, security, transportation and logistics.

The acquirer is sells 3G wireless PC cards, ExpressCards, USB modems, embedded modules, fixed and mobile terminal solutions and communication software to wireless network operators, distributors, OEMs, and vertical markets worldwide.

Enfora is a privately-held company that delivers intelligent asset management solutions that leverage machine-to-machine communications. It sells embedded platforms, integrated platforms, and embedded software to enterprises, applications service providers, OEMs and distributors. 

ABI Research (News - Alert) expects cellular M2M connection revenue to grow more than 22 percent annually through 2014.

As discussed in an issue of INTERNET TELEPHONY magazine, which was published a year ago this month, machine-to-machine communications enables equipment anywhere in the world to provide data on its own status, relay other information and be remotely controlled.

Global 500 companies including General Electric, General Motors (News - Alert) and Xerox have publicly announced M2M initiatives. The M2M opportunity applies to everything from ATM machines to heart monitors. In fact, telephone companies have been talking about the promise of M2M for more than a decade. But early on the telcos used the word telemetry to describe this concept. The application the telcos liked to reference in those days was vending – that is, allowing owners of candy and soda pop machines to monitor their boxes remotely to stay abreast of when refills or other maintenance were required.

So, other than its name, what’s new with M2M today? And why, after years of being a niche technology, is the mass market train finally leaving the station? It’s a combination of factors, including the now widespread availability of cellular networks, a move by some players in the communications industry to provide businesses with more customized solutions, and the growing availability of gear that is built for this kind of thing.