Sierra Wireless agreed to acquire Wavecom, a leading provider of embedded wireless technology for M2M (machine-to-machine) communication, for approximately EUR 218 million. The offer represents a premium of 21% over the offer for Wavecom shares announced by Gemalto on October 6, 2008 and a 108% premium over the share price on October 3, 2008, the last trading day prior to Gemalto’s announcement of its offer. For the OCEANEs, the price represents a premium of 2% to their redemption value.
The companies said their merger positions them to benefit from the anticipated growth in wireless data for the mobile computing and M2M markets – which are expected to grow to over 200 million units by 2012. The combined company would offer a broad wireless data product portfolio, including PC adapters, 2G, 3G and multi-mode embedded modules, M2M terminals, software and solutions. The companies have long-term relationships with mobile network operators and market- leading OEM customers in key markets around the world.
Wavecom will operate as a Sierra Wireless business unit based in Paris, and the two companies will leverage synergies in product development, sales channels and complementary resources to accelerate profitable growth and product leadership in M2M embedded modules, M2M terminals, and M2M software, solutions and services. Furthermore, the addition of Wavecom’s significant presence and capabilities in Europe will provide strong support to Sierra Wireless’ mobile computing business in the region.http://www.sierrawireless.comhttp://www.wavecom.com
