Viola Credit Announces Profitable Realization of Telit Transaction
In May of 2014, Viola Credit funds led a management buyout transaction by providing a $25.6M loan to finance the additional purchase, directly and indirectly, of Telit Communications shares by certain companies controlled by Oozi Cats, CEO and Executive Director of Telit. The transaction enabled Mr. Cats to assume control of over 20% ownership in Telit Communications.
The loan carried an annual interest as well as an equity kicker in the form of Telit shares. A rise in Telit’s share price, from 195p when the loan was provided to 340p today, enabled Mr. Cats to repay the loan in full, plus interest.
The realization of Viola Credit’s shares in Telit (that were given in connection with the transaction), together with the primarily sum of the loan and the interest, enabled the fund to generate a total return of $40M to its investors.
Telit is a publicly traded provider of global wireless technology company. The Company is a global leader in Internet of Things (IoT) enablement. They offer the industry’s broadest portfolio of integrated products, platforms and services to support and enable IoT deployments from things to apps. Its portfolio of modules addresses all cellular communication technologies, GNSS and short-to-long range wireless applications. Its IoT connectivity plans and IoT platform services help reduce the risks, time to market, complexity and costs associated with deploying and providing IoT services across industries and vertical markets worldwide.