Sierra Wireless completed the previously announced sale of its Shenzhen, China-based automotive embedded module product line to Rolling Wireless (H.K.) Limited (“Rolling Wireless”) for US$165 million in cash. The sale of the automotive product line includes approximately US$19 million of cash and is subject to normal working capital adjustments.
The automotive embedded modules were developed in China by Sierra Wireless and manufactured in China by outsourced contract manufacturers for sale to global electronics companies for integration into new vehicles assembled in China, Europe, and Mexico. Approximately 150 of the Company’s employees located in Mainland China, Europe and in the Asia Pacific region are becoming employees of Rolling Wireless upon the closing of the transaction.
“This divestiture of the Automotive product line enables Sierra Wireless to strengthen our focus and success in investment in our IoT Solutions that deliver high-value recurring revenue,” said Kent Thexton, President and CEO of Sierra Wireless. “Completing the transaction also gives us financial strength as we expand our position in the growing IoT solutions market as well as broaden our portfolio of new 5G modules and gateways for the Enterprise and Mobile Broadband markets.”
