Inseego completes sale of telematics business for $52M in cash

Inseego (INSG) announced the successful completion of the previously announced sale of its global telematics business for $52M in an all-cash transaction to Ctrack Holdings, a portfolio company of Convergence Partners. The transaction involves the divestiture of Inseego’s telematics business that operates across the United Kingdom, the European Union, Australia and New Zealand. The sale of the telematics business served two important purposes of allowing the company to focus on driving growth in its core 5G domestic business and providing cash for the recapitalization and debt reduction that was executed. As part of that initiative, the company used a portion of the proceeds from the sale of the telematics business to repay in full the remaining $6M balance due under Loan and Security Agreement, dated June 28, among the company, South Ocean Funding, LLC, certain participant lenders and certain subsidiaries of the company.