Sierra Wireless acquires M2M Group

Sierra Wireless has announced the completion of the previously announced acquisition of the M2M group of companies (“M2M Group”) in Australia. Total cash consideration paid to the shareholders of the M2M Group was US$19.6 million (US$17.0 million, net of cash acquired) plus approximately US$1.1 million for the retirement of certain obligations, subject to normal working capital adjustments.

The M2M Group is focused on IoT connectivity services and cellular devices in Australia. The acquisition expands Sierra Wireless’ IoT solutions business in the Asia-Pacific region. The business will be an excellent strategic fit with Sierra’s IoT Solutions business with slightly more than half of the M2M Group’s revenue coming from subscription-based recurring revenue. The M2M Group’s revenue for the 12 months ended November 30, 2019 was US$19.0 million, of which US$9.6 million was recurring subscription-based revenue. The M2M Group has a strong management team and solid carrier relations in the region.