M2M player Sierra Wireless says it has completed its $21 million takeover of Canada’s In Motion Technology.
The deal was announced as recently as January and is aimed at bolstering the position of Sierra Wireless (Richmond, Canada) in the transit and commercial fleet markets.
In Motion (New Westminster, Canada) provides so-called ‘rugged’ in-vehicle mobile routers that can be tightly integrated with security systems and management and application platforms.
Using the technology, companies can connect and manage mobile operations, vehicles and workforces more efficiently, reliably and securely, claims In Motion.
Following the takeover, Sierra Wireless plans to work on developing its range of device-to-cloud solutions for enterprise customers.
It says its aim is to offer customers the “broadest choice”, from simple gateways to full-featured mobile routers, as well as a comprehensive suite of cloud services and applications.
Sierra Wireless also believes it will hold a strong leadership position and “unique capabilities” in major growth segments – including public safety, transit and commercial fleet – thanks to the combination with In Motion.
“The Sierra Wireless and In Motion businesses are highly complementary, and together will hold a unique competitive position,” said Jason Cohenour, the chief executive of Sierra Wireless, when first announcing the takeover plans. “We will have the products, channels, and technology needed to offer the most comprehensive suite of solutions to our customers and expand our market share in high growth, high value markets such as public safety and commercial fleets.”
Last year, In Motion generated $15 million in revenues and reported a gross margin of 50%, notes Sierra Wireless.
Sierra Wireless, meanwhile, reported revenues of $441.9 million, 11.2% more than in 2012, and earnings from operations of $5 million, up from $0.9 million in 2012.
“We are exceptionally well positioned to capture the long-term M2M growth opportunity, and we are focused on continuing to drive profitable organic revenue growth, while we pursue additional acquisitions,” said Cohenour in commenting on the results.