Proactive Investors - Run By Investors For Investors

Sierra Wireless buys Sweden's Wireless Maingate in bid to expand M2M connectivity services

Sierra Wireless buys Sweden's Wireless Maingate in bid to expand M2M connectivity services

Sierra Wireless (NASDAQ:SWIR) (TSE:SW) has agreed to acquire Sweden-based Wireless Maingate for US$90 million in cash, the company said Monday. 

Maingate provides machine-to-machine (M2M) connectivity and data management services, with the deal expected to help Sierra accelerate its "device-to-cloud mission". 

“The acquisition of Maingate is a strong strategic fit for Sierra Wireless, said president and chief executive officer, Jason Cohenour.

“Maingate has a strong base of top-tier M2M customers and a proven technology platform that we believe will enable market expansion and accelerated services growth through our channels.”

Maingate has more than 500 customers across Europe, reaching a subscriber base of more than 500,000 connected devices, Sierra said. It is expecting 2014 revenue of over US$19 million, and EBITDA of US$6 million.

The deal, which is to wrap up in February, is anticipated to immediately add to Sierra's earnings.

The two companies will be able to offer customers in Europe complete "device-to-cloud" solutions, they said, with fully integrated hardware, embedded software development tools, cloud-based app development, device and subscription management as well as wireless services.

“Joining with Sierra Wireless enables us to accelerate our growth in Europe and broaden our customer base,” said Maingate's CEO Baard Eilertsen. 

“Enterprises throughout Europe are looking for efficient ways to connect their assets and digitize their businesses, and the combined offering from Sierra Wireless and Maingate is the perfect solution for that," he added.

Shares of Sierra rose 5.6 percent to C$51.99 in Toronto as of 11:30am ET today, extending year-to-date gains to more than double.

View full SW profile View Profile

Sierra Wireless Timeline

Related Articles

Australian dollars
September 28 2018
The company is now achieving positive earnings before interest, tax, depreciation and amortisation results each month.
September 18 2018
New business from the likes of Vodafone and GSK and a strong contribution from The Corner, which it acquired in December, meant revenues jumped 70% in the first half
Data servers
November 22 2018
The company listed on the main board of the LSE in November
Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use