Sierra Wireless agrees to acquire Sagemcom M2M for €44.9m in cash

Jason Cohenour, Sierra Wireless Jason Cohenour, Sierra Wireless

Vancouver, British Columbia, Canada. June 18, 2012 — Sierra Wireless today announced it has entered into an exclusivity agreement for the acquisition of Sagemcom’s machine-to-machine (M2M) business. Sierra Wireless has submitted a binding offer to acquire substantially all of the assets of the business for €44.9 million in cash consideration, plus assumed liabilities.

The proposed acquisition remains subject to completion of the consultation process with employee representatives. This process is expected to commence immediately and, when complete, Sagemcom will be able to enter into a definitive agreement with Sierra Wireless. The companies expect this to occur in the third quarter.

Sagemcom, a French high-technology group active in broadband, telecom, energy, and document management, was an early entrant in the M2M market. The company has successfully built a growing M2M franchise that includes 2G and 3G wireless modules, as well as industry-leading rugged terminals for GSM-Railway (GSM-R) applications. Sagemcom M2M offers Sierra Wireless a significantly enhanced market position in key segments, including payment, transportation, and railways, as well as new geographical expansion into Brazil.

“Combining Sagemcom’s M2M business with Sierra Wireless is a unique opportunity for us to enter new markets and bolster our leadership in wireless M2M communications,” said Jason Cohenour (pictured), president and CEO of Sierra Wireless. “With a strong market position in key segments, a culture of innovation, and experienced teams based in Paris and Shenzhen (China), Sagemcom M2M is an ideal fit for Sierra Wireless.”

Sagemcom’s M2M business generated approximately €39.9 million in revenue and was described by the company as “solidly profitable” during the 12-month period ended December 31, 2011. Sierra Wireless plans to fund the purchase price out of cash reserves and the acquisition is expected to be immediately accretive to Non-GAAP earnings. More detailed financial information will be provided when Sierra Wireless presents its second quarter results on August 2.

Sierra Wireless (NASDAQ: SWIR) (TSX: SW) offers industry-leading mobile computing and M2M communications products and solutions that connect people, devices, and applications over cellular networks. Wireless service providers, equipment manufacturers, enterprises and government organisations around the world depend on us for reliable wireless technology. We offer 2G, 3G and 4G wireless modems, routers and gateways as well as a comprehensive suite of software, tools, and services that ensure our customers can successfully bring wireless applications to market.

FEATURED IoT STORIES

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, iot home automation is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more
RECENT ARTICLES

The ultimate guide to IoT in Logistics

Posted on: October 20, 2021

Welcome to The World of Logistics! By 2030, IoT in Logistics is predicted to be worth more than $100 million. To help our logistics customers get an understanding of what they need to know to succeed with IoT, we’ve created a unique Nomadic Device guide that outlines how to achieve quick time to value. We’ll

Read more

Private cellular networks spend to approach $12bn by 2023 enabled by 5G capabilities, says Juniper

Posted on: October 20, 2021

A new report by Juniper Research has found that the enhanced capabilities of 5G are driving enthusiasm and awareness of private cellular networks; bringing annual spend on network hardware and services to almost $12 billion (€10.29 billion) globally by 2023, growing 116% from the $5.5 billion (€4.72 billion) expected for 2021.

Read more