Sierra Wireless has 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’s M2M business generated approximately €39.9 million in revenue and was solidly profitable during the twelve-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.
Source: Sierra Wireless.