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Sierra Wireless Acquires Australia's M2M Group of Companies for $19.8 Million US to Expand IoT Solutions Business in Asia-Pacific Region
Thursday, November 7, 2019Company Profile | Careers | Follow Company
Richmond, BC, November 7, 2019--(T-Net)--Sierra Wireless announced this week that it has signed an agreement to purchase the M2M group of companies ("M2M Group") in Australia to expand the company's IoT Solutions business in the Asia-Pacific region.
The M2M Group is focused on connectivity services and IoT cellular devices with a strong history of IoT leadership and solid carrier relations in the region.
The purchase price of $19.8 million (US) is based on cash consideration of $18.8 million for 100% of the equity plus approximately $1.0 million for the retirement of certain obligations, subject to normal working capital adjustments.
"The business is an excellent strategic fit with our IoT Solutions business with slightly more than half of the M2M Group's revenue coming from subscription-based recurring revenue. This segment of the business has been growing rapidly over the last several years", noted the company in a release.
The M2M Group's revenue in the last twelve months was US$17.9 million, of which $9.2 million was recurring subscription-based revenue.
Sierra Wireless says it expecst the acquisition to be accretive to earnings immediately following closing in early 2020. The M2M Group has a solid platform to increase the company's IoT services and solutions in Australia and Southeast Asia.
They expect the transaction to close early in January 2020, subject to the satisfaction of customary closing conditions.
About Sierra Wireless
Sierra Wireless (NASDAQ: SWIR) (TSX: SW) is the leading IoT solutions provider that combines devices, network and software to unlock value in the connected economy. Companies globally are adopting IoT to improve operational efficiency, create better customer experiences, improve their business models and create new revenue streams. Whether it is a solution to help a business securely connect edge devices to the cloud, or a software/API solution to help manage processes associated with billions of connected assets, or a platform to extract real-time data to make the best business decisions, Sierra Wireless will work with you to create the right industry-specific solution for your next IoT endeavor. Sierra Wireless has more than 1,300 employees globally and operates R&D centers in North America, Europe and Asia. For more information, visit www.sierrawireless.com.
About M2M Connectivity
Here at M2M Connectivity we have over 15 years experience supplying and designing for M2M and the IoT in Australia and New Zealand. We have worked on project applications for Smart Cities, Smart Utilities, Asset Tracking, Agriculture, and Security/Surveillance applications. (To name a few!)
The business is managed by Darren Moroney, who previously headed the Ericsson M2M business in Australia.
We are a specialist distributor for leading wireless modules, modems and antennas and software development and support, and also provide IoT Design Services such as consulting on future-proofing for 3G/ 4G / 5G and hardware certification.
Our product portfolio covers modules and modems for LPWAN, cellular (4G/LTE, 3G/HSPA,), satellite (Inmarsat, Orbcomm, Globalstar Simplex, Iridium), and short range industrial RF.
Through our sister company M2M One, we can also provide a range of personalised IoT network services, including M2M SIMs with tailored data plans and static IP services.
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply conditions, channel and end customer demand conditions, revenues, gross margins, operating expenses, profits, and other expectations, intentions, and plans contained in this press release that are not historical fact.
Our expectations regarding future revenues and earnings depend in part upon our ability to successfully develop, manufacture, and supply products that we do not produce today and that meet defined specifications. When used in this press release, the words "plan", "expect", "believe", and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in the wireless data communications market. In light of the many risks and uncertainties surrounding the wireless data communications market, you should understand that we cannot assure you that the forward-looking statements contained in this press release will be realized.
Company Snapshot |
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Sierra Wireless (a Semtech Company)
Richmond, BC (Wireless)
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