Sierra Wireless becomes a M2M pure player
Canada’s Sierra Wireless is getting out of the AirCard business, selling its wireless modem business to NetGear for US$ 138 million (EUR 102 million). The company said it plans to use proceeds from the sale on potential acquisitions in the M2M space as well as possibly returning some of the money to its shareholders. Sierra will also transfer 160 employees to NetGear.
Sierra Wireless’ AirCard business focuses on manufacturing mobile broadband devices, such as PC card slots, ExpressCard slots, USB ports or mobile WiFi hotspots, which connect notebooks and other electronic devices to 3G/4G networks. Under the terms of the transaction, Netgear will acquire the assets and operations of the AirCard business, including customer relationships, products, intellectual property, inventory and fixed assets, and the assumption of warranty commitments and other customer obligations.
The sale will enable Sierra Wireless to focus on the M2M market (cf. Smart Insights Weekly #11-42). The transaction is subject to regulatory conditions and is expected to close in March 2013.