Wireless technology firm Telular Corp. has announced it will acquire SkyBitz, Inc. for $42 million in cash and stock. SkyBitz is a provider of mobile resource management solutions focusing on tracking and management of truck trailers, intermodal containers and other mobile assets. The combined companies will create the largest “pure player” asset tracking and management company in the world, according to a statement.

SkyBitz’s Global Locating System (GLS) satellite-based technology provides real-time visibility of many asset types and reduces operating costs, increases efficiency and aides in the compliance with regulatory requirements for customers across an increasingly complex set of supply chains and business ecosystems, according to the company.

Dr. Homaira Akbari, president & CEO of SkyBitz, will remain with the combined company as president of SkyBitz. In addition, SkyBitz’s management team is expected to stay in its entirety to help grow the asset tracking business and continue developing related, add-on services in the areas of cargo security, cargo status monitoring, preventative maintenance and other applications which Akbari said will be soon announced.

“I am very excited about the acquisition of SkyBitz as it gives us the leading position in an adjacent M2M vertical market, provides immediate incremental cash flow and builds upon our stream of high-margin, recurring service revenues,” said Joseph Beatty, president & CEO of Telular Corp.

“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,” he continued. “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.

“We believe that this acquisition will help us accelerate our growth and profitability in the wireless space while maintaining a strong financial position and staunchly supporting a tangible return to our shareholders in the form of a quarterly dividend,” Beatty added.

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

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