The latest deal values u-blox shares at CHF 135 each (~$168), a 53% premium over the six-month average price through August 14. That is a major boost for shareholders, especially considering u-blox’s recent struggles with uneven profitability despite its strong market position.

u-blox Performance, 2020-2024

Sources: Counterpoint Research IoT Vendor Analysis, u-blox financials

Sources: Counterpoint Research IoT Vendor Analysis, u-blox financials

u-blox exited the cellular module business to sharpen its focus on location technologies. However, the company’s H1 2025 results, excluding the divested module segment, show that R&D remains one of the largest cost drivers, with expenses rising YoY. Probably, it is struggling with R&D bets not paying off. While operating losses narrowed compared to last year, the bottom line still slipped into a deeper net loss. With revenue down, operating cash flow quality weaker and investment needs still high, a go-private recap with Advent offered the cleanest way to complete the portfolio pivot and re-fund growth.

Why does it make sense for Advent?

• Undervalued GNSS leader: For years, u-blox has led the way in GNSS, with its chips used in automotive, drones, wearables, and logistics devices. Still, its stock often traded lower than peers because of uneven profits. Advent saw the chance to step in and acquire this strength at the right moment.
• Future growth in positioning and connectivity: The demand for accurate positioning is growing rapidly. It is driving the future of cars with ADAS and autonomous driving, supporting IoT solutions in logistics and industry, enabling smarter health-focused wearables, and guiding drones and robotics. In these high-precision markets, u-blox products are already trusted for their centimeter-level accuracy.
• Classic PE playbook: Advent has the capital and expertise to scale and streamline operations, and expand partnerships. It will likely focus on streamlining costs and boosting profitability, while at the same time building stronger partnerships across the automotive, IoT and industrial ecosystems. Over the longer term, Advent could look to exit through an IPO or a strategic sale, aiming to unlock a valuation far higher than what u-blox could have achieved on its own.
• Strategic hedge in tech and patent: By owning a Swiss-listed GNSS/IoT leader, Advent not only adds exposure to high-tech infrastructure that powers connected and autonomous ecosystems but also secures a strong patent portfolio. It is a smart way to balance its portfolio with a bet on infrastructure-level technology.

Overall, u-blox got an attractive exit in a tough situation, while for Advent, it looks like a textbook private equity move – buy an undervalued but strategically important asset, invest in growth and go-to-market, and later exit at a higher valuation, maybe even by splitting parts to unlock more value.