Telenav Announces Planned Sale of Enterprise Business

Telenav, Inc. (NASDAQ: TNAV) has entered into an agreement to sell the Telenav enterprise business unit to FleetCor Technologies Operating Company, LLC, for approximately $10 million in cash, with an anticipated closing date in 30 days. Telenav’s enterprise business allows companies to better manage operations by using the Telenav location-based services (LBS) platform to track status and the location of mobile workers, vehicles and assets deployed in the field.

“As our consumer, advertising and automotive businesses grow, we have seen a divergence between the strategic direction of these areas and that of our enterprise business,” said HP Jin, president and CEO of Telenav. “This agreement will allow us to focus more and strengthen our strategic growth areas.”

Telenav will provide certain services after closing to facilitate the transition of the business. Other terms of the agreement were not disclosed; however, the Company noted that as the deal will close near the end of the fiscal third quarter, the financial guidance provided for the quarter will be unchanged. As to the full-year revenue for fiscal 2013, the anticipated range for revenue will now be $190 to $194 million, reflecting the impact on revenue from this sale. Except as noted, the financial impact is not expected to be material to the financial results of Telenav.