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Sierra Wireless acquires Sagemcom's machine-to-machine (M2M) business
Aug 02, 2012 (Datamonitor Financial Deals Tracker via COMTEX) --
Sierra Wireless, Inc., a Canada-based developer and manufacturer of wireless communications equipment, has acquired the machine-to-machine (M2M) business of Sagemcom SAS, a France-based provider of broadband terminals, convergence and energy solutions.
Announcement (June 18, 2012):
Sierra Wireless has entered into an exclusivity agreement to acquire the M2M business of Sagemcom.
According to the agreement, Sierra Wireless has submitted a binding offer to acquire substantially all of the assets of Sagemcom's M2M business for EUR44.9 million in cash consideration plus assumed liabilities.
Sierra Wireless plans to fund the consideration out of its cash reserves.
Sagemcom's M2M business generated approximately EUR39.9 million in revenue for the year ended December 31, 2011.
The proposed acquisition remains subject to completion of the consultation process with employee representatives.
Arma Partners is acting as financial advisor to Sagemcom, while Linklaters LLP is acting as legal advisor and Lazard Group is acting as financial advisor to Sierra Wireless.
Deal Value (US$ Million) 56.79
Deal Type Acquisition
Sub-Category Asset Purchase
Deal Status Completed: 2012-08-01
Deal Participants
Target (Company) Sagemcom SAS - Machine-to-Machine (M2M) Business
Acquirer (Company) Sierra Wireless, Inc.
Vendor (Company) Sagemcom SAS
Deal Rationale
The transaction will offer Sierra Wireless with a significantly enhanced market position in key segments, including payment, transportation, and railways, as well as new geographical expansion into Brazil.
It will also provide Sierra Wireless with an unique opportunity to enter new markets and strengthen its position in wireless M2M communications.
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