Transaction enables Sierra Wireless to accelerate growth of machine-to-machine (M2M) business.
Sierra Wireless, Inc. today announced it has completed the sale of substantially all of the assets and operations related to its AirCard® business to NETGEAR®, Inc. for $138 million in cash plus approximately $5.9 million in assumed liabilities. The transaction was first announced on January 28, 2013. Sierra Wireless’s retained business includes its AirPrime™ embedded wireless modules, AirLink® intelligent gateways, and AirVantage™ M2M cloud product lines.
Jason Cohenour, President and CEO of Sierra Wireless, said:
“Sierra Wireless is now an M2M and connected device pure play, focused on providing innovative device-to-cloud solutions that enable customers across a broad range of markets to connect to the ‘Internet of Things’.”
“This transaction provides significant financial capacity to accelerate our growth in M2M – a market in which we are the world leader today, with the industry’s broadest product lineup, and an extensive, blue-chip customer base.”
Sierra Wireless intends to use a substantial portion of the net proceeds from the transaction to continue its acquisition strategy in the M2M market, with the objective of accelerating revenue and earnings growth by strengthening its leadership in existing markets and expanding its position in the M2M value chain. In addition, Sierra Wireless obtained the approval of the Toronto Stock Exchange in February 2013 for a Normal Course Issuer Bid to re-purchase shares of the Company and has commenced purchases under this program.