Sierra Wireless to buy In Motion for US$21m as it looks to lead in public safety and fleet markets
Vancouver, B.C., Canada (Business Wire) — Sierra Wireless has entered into a definitive agreement to acquire Vancouver-based In Motion Technology Inc. for US$21 million in cash consideration, subject to certain customary post-closing adjustments.
In Motion is a provider of mobile enterprise solutions, supplying rugged in-vehicle mobile routers tightly integrated with an advanced mobile-optimised security system and a powerful management and application platform. The complete solution enables organisations to connect and manage mobile operations, vehicles, and workforces more efficiently, reliably and securely.
“In Motion will strengthen our leadership position in M2M and broaden our Enterprise Solutions portfolio,” said Jason Cohenour (pictured above), president and CEO of Sierra Wireless. “The Sierra Wireless and In Motion businesses are highly complementary, and together will hold a unique competitive position. We will have the products, channels, and technology needed to offer the most comprehensive suite of solutions to our customers and expand our market share in high growth, high value markets such as public safety and commercial fleets.”
With complementary product portfolios and channels, Sierra Wireless and In Motion say that together they will provide the broadest choice of device-to-cloud solutions for enterprise customers, from simple gateways to full featured mobile routers, as well as a comprehensive suite of cloud services and applications. The combined company expects to hold a leadership position in important growth segments, including public safety, transit, and commercial fleet.
“We are experiencing unprecedented growth in the market for mobile enterprise solutions, and joining forces with the clear industry leader will enable the combined organisation to capture a greater share of the opportunity,” said Dean Rockwell, CEO of In Motion Technology Inc. “We are excited to join the Sierra Wireless team and we look forward to being able to deliver even greater value to our customers with the expansion of our solutions offering and global footprint.”
During 2013, In Motion generated US$15 million in revenue and gross margin was 50% of revenue. Sierra Wireless (NASDAQ:SWIR) (TSX:SW) will fund the purchase price from its existing cash balance.
The transaction is subject to the approval of In Motion shareholders, and voting and support agreements have been obtained from the required number of holders for each share class. The transaction is structured as a statutory arrangement and requires the approval of the British Columbia Supreme Court. The transaction is also subject to post-closing working capital adjustments customary for a transaction of this nature. The transaction is expected to close in early March 2014, subject to customary closing conditions.
Additional information about the transaction is available in the Investor Information section of the Sierra Wireless website. CIBC World Markets Inc. is acting as financial advisor and Blake Cassels & Graydon LLP is acting as legal counsel to Sierra Wireless. Garibaldi Capital Advisors is acting as financial advisor and Farris, Vaughan, Wills & Murphy LLP is acting as legal counsel to In Motion.