Telular Corporation (News - Alert), a provider of remote monitoring solutions signed a definitive merger agreement to acquire SkyBitz, a provider of mobile resource management solutions.

The acquisition is subject to the approval of a communications license transfer by the FCC (News - Alert), and is expected to close in 60-90 days.

The acquisition, as indicated, aims at expanding Telular's position in the M2M space as a result of SkyBitz's (News - Alert) broad base of additional customers and proprietary SAAS technology platform. The combined companies are planning to become the largest asset tracking and management company in the world.

Transaction terms include a purchase price of $42 million, which includes $35 million in cash and $7 million in newly issued shares of common stock. The cash portion is indicated to be financed with a $30 million five-year bank loan and cash on hand.

“SkyBitz's management approach and growth objectives fit very well with Telular's strategy and include growing its installed base of units, enhancing its international presence, and entering new vertical markets related to asset tracking. Combined with Telular's existing portfolio of Telguard and TankLink services, we can address a much larger market opportunity and expand our technology base with satellite communications capabilities that will complement our historical expertise in cellular communications,” Joseph Beatty, president and chief executive officer of Telular Corporation said in a press release.

Beatty also believes that this acquisition will help the company accelerate its growth and profitability in the wireless space while maintaining a strong financial position and staunchly supporting a tangible return to its shareholders in the form of a quarterly dividend.

Founded in 1992, SkyBitz has been focusing in reducing the operating costs, increasing efficiency and aiding in the compliance with regulatory requirements across an increasingly complex set of supply chains and business ecosystems. SkyBitz's unique Global Locating System satellite-based technology provides real-time visibility of many asset types.

SkyBitz also said that for the current fiscal year ending December 31, 2011, it expects to record $35 million of revenue, of which 45 percent will be derived from recurring monitoring services, and net income before non-cash items of approximately $5.0 million. Further, by the end of its calendar fiscal year, SkyBitz said it expects to be tracking and managing approximately 190,000 assets, a net increase of approximately 11 percent over the end of the prior year.

"SkyBitz's technology platform is the industry's best-in-breed; providing a powerful, highly reliable solution that is complementary to Telular's existing portfolio of M2M solutions," explained Homaira Akbari, president and chief executive officer of SkyBitz.

Akbari brings 20 years of experience in sales, marketing, product development, consulting and operations, and plans to remain with the combined company as president of SkyBitz.

In related news, Telular announced that Joe Beatty, President and CEO and Jonathan Charak, Senior Vice President and CFO will be presenting at the LD MICRO Growth Conference on Thursday, December 8^th in Los Angeles, California.