The unit is called IoT Factory Solutions and will be part of the IoT services division will expand the firm's services and increase recurring revenue opportunities.
The industrial Internet of Things is where industrial products, processes and services communicate with each other and with people over a network.
IoT Factory Solutions is well positioned to take advantage of the market opportunities in the Industrial IoT, otherwise referred to as Industrie 4.0, Telit said.
President and finance director Yosi Fait said: "We are now providing end-to-end enablement solutions for a number of vertical markets to our growing range of customers - and increasing our recurring revenues.
"We are looking to leverage our existing assets and industry expertise to exploit the growing demand for IoT in the manufacturing and factory markets, known as Industrial IoT.
"This is a potentially very valuable market. We expect this business to make a significant contribution to Group revenues and profitability within four to five years."
IoT Factory Solutions allows customers to take advantage of the Industrial IoT opportunity with multiple paths to deployment, centered on the group's proven IoT platform for factory automation.
The group's deviceWISE for Factory is already an industry-leading, enterprise-grade industrial automation platform suited to all manufacturing verticals including automotive, pharmaceuticals, machinery, oil and gas.
Telit's secureWISE solution has been widely recognised as the leading solution for highly secured remote access, delivering connectivity across private networks.