Swiss IoT logistics company U-blox wants to merge with UK company Telit Communications, which does much the same, but the latter doesn’t like the terms of the deal.

U-blox made its preliminary move on 20 November and they had to extend the process in mid-December because the two parties had yet to come to an agreement. Today Telit, which is a PLC, issued a statement saying it had called off the discussions because the best offer it had received still undervalued the company.

Telit has in recent months received a number of proposals, each of which has been previously announced, which the Board has explored with its advisers,” said the Telit announcement. “The Board noted the potential industrial logic in a combination with u-blox that could create value for shareholders of both companies. However, following extensive discussions with u-blox, the Board does not now believe that it will be possible to reach agreement on terms which would ensure value creation for Telit’s shareholders.

“Given that the Group is confident in its prospects, is well capitalized, and has a strong position in a growing market segment, the Board remains confident it can deliver growth in shareholder value as an independent entity. It does not consider that a protracted period of uncertainty and distraction is in the best interests of Telit or any of its stakeholders.”

That all seems totally fair enough. It looks like Telit is a popular M&A target these days, with IoT starting to finally take off as a commercial proposition. Its board is therefore right to put a high price on its independence and to back itself to create substantial shareholder value as a standalone company. There may not be too many IoT bargains left out there.