Novatel Wireless Inc. agreed to sell a business that includes MiFi hot spots and restructure the company, as it continues to move away from being a "hardware-centric" manufacturer toward areas like the internet-of-things.

The company agreed to sell its mobile-broadband unit, which also includes USB modems, for $50 million to Hong Kong-based T.C.L. Industries Holdings. T.C.L. is part of electronics company TCL Corp.

Novatel shares rose 31% to $4 in after-hours trading. The company said the "transformative" deal "punctuates our period of metamorphosis."

Novatel will form a new public holding company and operating structure, and it is considering new names. After the sale closes, its Ctrack business will provide about 70% of its total revenue. Ctrack provides vehicle tracking, fleet management and insurance telematics services.

Novatel's other operations include business connectivity and device management provider Feeney Wireless.

Novatel went public in 2000. Its early products included modems for the Palm Pilot.

In August, the company said it would cut 45 jobs as it focused on higher-margin products. In the second quarter, Novatel posted a narrower loss, while revenue rose 21.5% to $62.8 million.

The company sold certain hardware modules and related assets to Telit Wireless Solutions Inc. for about $14.75 million in April.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

September 22, 2016 18:25 ET (22:25 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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