Canadian firm Sierra Wireless has entered into an exclusivity contract for the acquisition of Sagemcom’s machine-to-machine (M2M) business, valued at €44.9mn.
As an early entrant into the M2M market (tipped to revolutionise many areas of consumer life and industry, including home automation), French company Sagemcom has successfully built a growing M2M franchise that includes 2G and 3G wireless modules, as well as rugged terminals for GSM-Railway (GSM-R) applications.
The acquisition is expected to provide Sierra Wireless with a significantly enhanced market position in key segments, including payment, transportation, and railways, as well as new geographical expansion into Brazil.
Sagemcom’s M2M business generated approximately €39.9mn in revenue in 2011 and was solidly profitable. The acquisition is expected to be completed in the third quarter of this year.