Oozi Cats founded the high level communications engineering and distribution company Dai Telecom Ltd. in Israel in 2000. In 2002 his company took over Telit in Italy to establish a worldwide acting organization. His experiences as CEO and management knowledge helped to turn Telit into a global player in the M2M market.
Headed by Mr. Cats as CEO, Telit was listed in the London Stock Exchange in April 2005.
Q: Mr.Cats, you called the recent acquisition of the Motorola M2M product line a “perfect match”.The takeover will certainly have a significant strategic impact on the M2M market.What does this change mean for Telit besides technological and financial aspects?
A: A merger is always about people, naturally. With the takeover, we will acquire around 40 new colleagues. These are highly professional and very motivated experts around the globe. We now need to ensure that we ideally combine our strengths and generate stimuli for growth. We are already working intensively on this and can look back on a successful start to our cooperation.
Q: So in your eyes the acquisition is a perfect match also on the human resource side?
A: Yes, definitely. We have a lot in common: commitment to a technology that is one of the key foundation stones of future economic development, an extremely high degree of professionalism, a global approach and international orientation. Both the current Telit employees and our new colleagues operate all over the world. For the former Motorola M2M experts, Telit is not a foreign culture. It is, I can only repeat, a perfect match.
Q: What is Telit’s strategy for an integration process?
A: We always act prudently. First and foremost, the takeover needs to make sense from a business management point of view and provide us with strategic advantages in terms of market coverage, product portfolio and competitive position. If a takeover does not satisfy these criteria, we do not start any process. We do not gamble. I think this is also very important for the employees. We offer stability and growth, which are crucial bases for a healthy corporate culture. Our other corporate takeovers to date also followed this principle.
Q: Nonetheless, Motorola is one of the world’s best-known technology brands. What can you offer the former Motorola employees to make up for this?
A: Our philosophy, for example. For us, M2M is not one division among many. Telitis M2M. This is an area where we cannot make any compromises. And in this market, we are a very well-known brand. Our new employees will therefore find that we provide the best platform to develop and realise their ideas. The other factor is our success. Despite the adverse global economic conditions and the competition, Telit can demonstrate consistently profitable growth. Not many in the technology sector can say this. We are a company with a future, and we are actively shaping that future. I’m confident what we are offering is very attractive. And our new colleagues, as well as our customers and partners incidentally, think so too.
Q: How does the integration of your new colleagues affect your R&D capacities?
A: Relatively strongly since R&D is what drives our company. Time and again, we have realised pioneering achievements and demonstrated our technical expertise and creativity. This is now set for a further massive boost. The acquisition enables us to double our R&D efforts in Israel.Meanwhile 25 people are working in the R&Dsection there and are becoming our 5th R&D centre.We will continuously increase our R&D efforts in Israel and in all our other research centres.Telit feels well prepared to support and accelerate the rapid growth in the M2M market by delivering the cutting-edge technology and premium support needed to create innovative solutions.
Q What will the R&D centre in Israel focus on? Are there already any products that the team there is working on?
A The team in Israel will support the other R&D centres worldwide in the cellular sector. It is also responsible for the further development and support of Motorola products.
Q: The market share of Telit and Motorola are about 20 percent. Where do you see this deal taking Telit? What are your ambitions for the business for the next years?
A: In 2010 we already announced that our revenue showed 48 percent organic growth and this is an impressive number comparing to the growth of the whole M2M market which is less than 20 percent. We keep taking market share and we keep growing. That already shows our strong position in the market. I’m confident that in 2011 we will be able to reach the same results in the organic side of the business. Telit is an extremelyfocused player that already has the capacity to provide wireless technologies for M2M activities such as cellular GSM/GPRS, EDGE, UMTS/WEDGE/HSDPA, CDMA, short range ZigBee, wireless M-Bus and other Short-Range RF M2M modulesfor all its customers. The Motorola acquisition is a perfect fit for Telit and our expanding strategy. With that we received a good, stable product portfolio as well as great customers, some of them leaders in their markets. This enables us to enhance the Telit product line and to offer our overall service to our new customers. Moreover, with the great workforce that joined Telit we will be able to power up our R&D, sales and marketing business once more. We are on our best way to become the M2M market leader in the near future and this is what we are aiming for.