Trondheim-based Norbit has acquired the business and assets of Norwegian IoT asset-tracking company StalkIT and associated companies for NOK24m.

“Through the acquisition we are broadening our product offering and strengthening our position in the asset-tracking vertical,” said Per Jørgen Weisethaunet, CEO of Norbit. “This is a strategic fit with Norbit’s plans to grow a new sub-segment based on selected IoT and 5G niche applications.”

StalkIT has developed flexible tracking services with tracking devices and software tailored to support and maintain control of assets. Currently, the business has approximately 20,000 active tracking units in use.

As part of the transaction, Norbit will, in addition to the technology, the customer base and the running business, also assume ownership of a Spanish legal entity with six employees covering business development, software development and customer support. The StalkIT business will be integrated in Norbit’s ITS business segment.

Norbit has been a partner of StalkIT on industrialisation and production of its tracking units.

The transaction price is NOK24m and is expected to be financed by use of Norbit’s available credit lines. Completion of the transaction is contingent on a satisfactory outcome of a due diligence and shareholder approval in StalkIT and associated companies. Closing is expected to take place this month.

Norbit is also in advanced and exclusive negotiations regarding an add-on acquisition of an undisclosed European company, which is operating in the asset and vehicle tracking domain, offering a share of recurring subscription-based revenues.

“The two acquisitions jump start our strategy of building a new vertical within our ITS segment with a subscription-based revenue model where we also take advantage of Norbit’s existing key competence within high-volume wireless low power devices and utilising our sales and distribution platform,” said Weisethaunet.

Norbit provides tailored technology to selected niches. The company’s business is structured to address its key markets: Oceans is offering tailored technology to global maritime markets; Intelligent Traffic Systems (ITS) is offering connectivity for vehicle identification and tracking; and Product Innovation & Realisation (PIR) is offering R&D services and contract manufacturing to key customers.

Norbit is headquartered in Trondheim, Norway, with manufacturing facilities in Selbu and Røros, Norway, and 14 offices and subsidiaries around the world.