M2M player Sierra Wireless has announced a $5.9 million takeover of AnyDATA’s embedded modules business as it looks to strengthen its grip on the cellular market and boost its position in South Korea.
The assets are to be integrated with the Sierra Wireless (Richmond, Canada) OEM Solutions product portfolio, with 16 sales and engineering staff from AnyDATA’s (Irvine, CA, USA) South Korean subsidiary transferring to Seoul premises recently opened by Sierra Wireless.
The companies expect the deal to close sometime this month.
The AnyDATA business being acquired generated revenues of about $10 million last financial year and was “modestly profitable”, according to Sierra Wireless.
By comparison, Sierra Wireless reported revenues of $109.6 million for the three months ending June, its first quarter as a “pure play” M2M company following the $144.5 million sale of AirCard, its mobile broadband devices business, to Netgear (San Jose, CA, USA) in April.
Sierra Wireless says that besides boosting its presence in South Korea the takeover of AnyDATA assets will reinforce its leading position in the global market for cellular M2M embedded modules.
According to data from ABI Research, the company held a 34% share of the market in 2012.
The move for AnyDATA comes after chief executive Jason Cohenour told analysts that Sierra Wireless was on the lookout for M&A opportunities when reporting the recent quarterly results.
Sierra Wireless is no stranger to acquisition, having spent nearly $60 million on the takeover of M2M operations from French technology group Sagemcom (Rueil-Malmaison, France) in August 2012.
Thanks partly to the strong performance of that business, Sierra Wireless reported a 15% increase in revenues for the three months ending June, compared with the same period of 2012.
The company has recently reported a number of important contract wins, including a high-profile deal to provide automotive modules for use on the LTE network of Verizon Wireless (New York City, NY, USA), and claims to have taken a leading position in 4G LTE.