The leading wireless solution provider for machine to machine and mobile broadband apps, Sierra Wireless, has declared that they are selling their AirCard business for $144 million to Netgear, a company that provides innovative products to ISPs, businesses and consumers. As a result of this deal Sierra Wireless will not only move about 160 workers to Netgear it will also have to give away two of its facilities to the international networking company.
Moreover, when this deal between Sierra and Netgear gets closed in March 2013, the cash revenues of the wireless solution providing company will go up to $100 million. With this cash Sierra is looking to boost its machine to machine market growth.
The CFO of Sierra West, David McLennan, noted in a statement that, “Upon closing this transaction, we will be highly focused on driving profitable revenue growth in our M2M business. As a stand-alone business, we will have a cost structure that supports considerably higher revenue levels, which will initially be reflected in modest operating margins. However, because we will be fully invested for growth, as we increase our revenues we expect to see greater operating leverage from the business.”
Before the news of the deal broke Sierra’s shares stopped trading but as the news surfaced SWIR stock climbed up by four percent when the trading started back up. Another major upward jump of eight percent was seen during afterhours trading.
Source: TechVibes
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