On Monday, Sierra Wireless announced it has entered into an 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 $56.6 million in cash.
Sagemcom (Dallas, Texas, USA), also known as Sagem Communications, is a technology group active in broadband, telecom, energy, and document management, was an early entrant in the M2M market back in 1998. The company has successfully built a growing M2M business that includes 2G and 3G wireless modules, as well as rugged terminals for GSM-Railway (GSM-R) applications.
Sagemcom M2M offers Sierra Wireless (Vancouver, Canada) an enhanced market position in key segments, including payment, transportation, and railways, as well as new geographical expansion into Brazil, says Sierra Wireless.
According to Didier Dutronc, senior vice president and GM of the M2M Embedded Solutions at Sierra Wireless, Sierra Wireless is already active in both the payments and transportation segments.
“The acquisition is expected to significantly increase our market share in [payments and transportation],” says Dutronc. “Railways is a new segment for Sierra Wireless. As Sagemcom enjoys the number one market position in railways, it will contribute to putting SWIR in a stronger position in the global M2M market.”
Sagemcom currently has local sales presence in Brazil and is already serving large customers there both in payment and transportation sectors, says Dutronc.
Sagemcom ’s M2M business generated approximately $50 million in revenue.
According to Sierra Wireless, once the acquisition is complete Sagemcom will be able to enter into a definitive agreement with Sierra Wireless. The companies expect this to occur in the third quarter.