Navigation product maker Beijing BDStar Navigation has agreed to acquire Canada-based mobile positioning technology developer Rx Networks in a C$31m ($23.1m) cash deal that will give an exit to telecommunications company Telus.
Rx provides mobile positioning technology to mobile operators and equipment manufacturers through its Location.io division, and indoor positioning systems through its Fathom Systems subsidiaries.
The divisions will be divided as part of the transaction, with Location.io being rebranded as Rx and bought by BDStar, and Fathom Systems being spun out with a shareholding structure mirroring that of Rx pre-acquisition.
Telus contributed to the company’s $3.3m series A round in 2007, which included British Columbia Discovery Fund and the conversion of $1m in convertible note financing from electronics producer Audiovox Canada.
Rx Networks added $1.3m in rounds in 2008 and 2010 according to regulatory filings.