Sierra Wireless is to acquire Sagemcom’s machine-to-machine (M2M) business for €44.9 million in cash plus assumed liabilities.
Sagemcom's M2M business includes 2G and 3G wireless modules, as well as rugged terminals for GSM-Railway (GSM-R) applications. Sierra Wireless said Sagemcom offers it 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, 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, Sagemcom M2M is an ideal fit for Sierra Wireless.”
Sagemcom’s M2M business generated approximately €39.9 million in revenue and was solidly profitable during the twelve-month period ended December 31, 2011, a Sierra Wireless statement said.
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.