Sierra Wireless (TSX:SW) has further solidified its move into the M2M space with the acquisition of Vancouver’s In Motion Technology Inc.
The companies have entered an agreement that will see Sierra acquire In Motion for US$21 million. The acquisition is subject to approval by In Motion shareholders.
In Motion developed technology that turns vehicles into moving cellular hotspots, typically used by emergency services in ambulances, police cars and fire engines.
Sierra Wireless has been refocusing its business to concentrate solely on the growing machine-to-machine (M2M) space. Last year, the company sold its AirCard business to focus more on using wireless technology for communication between devices.
AirCard is a cellular transmitter-receiver that plugs into laptops to provide 3G and 4G mobile broadband when there is no available Internet connection. Rogers' LTE Rocket Stick is an AirCard device.
“In Motion will strengthen our leadership position in M2M and broaden our enterprise solutions portfolio,” said Sierra Wireless CEO Jason Cohenour.
“The Sierra Wireless and In Motion businesses are highly complementary, and together will hold a unique competitive position. 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.”
“We are experiencing unprecedented growth in the market for mobile enterprise solutions,” said In Motion CEO Dean Rockwell, "and joining forces with the clear industry leader will enable the combined organization to capture a greater share of the opportunity."
