Sierra Wireless, the leading provider of fully integrated device-to-cloud solutions for the Internet of Things (IoT), announced that it had acquired machine-to-machine device company Numerex for approximately $107 million.
The acquisition expands Sierra Wireless’ position as a leading global IoT pure-play and will significantly increase its subscription-based recurring services revenue.
Under the terms of the agreement, Numerex shareholders will receive a fixed exchange ratio of 0.18 common shares of Sierra Wireless for each share of Numerex common stock.
Upon completion of the transaction, Numerex will become a subsidiary of Sierra Wireless and Numerex shareholders will own approximately 10 percent of the common shares of Sierra Wireless on a fully diluted basis. Numerex’s debt of approximately $20 million including fees shall be repaid with Sierra Wireless cash.
Jason Cohenour, President and CEO, Sierra Wireless
The acquisition of Numerex accelerates our IoT device-to-cloud strategy by adding an established customer base, significant sales capacity, proven solutions and recurring revenue scale.
Ken Gayron, Interin CEO and CFO, Numerex
We believe that combining with Sierra Wireless will strengthen Numerex’s business, advance our product offerings, and accelerate the growth of our recurring revenue streams.
