Sierra Wireless expands its M2M position with acquisition

Maingate expects 2014 revenue of over $19m and earnings before interest, taxes, depreciation, and amortisation of $6m. Sierra Wireless expects the transaction to be immediately accretive to earnings.

Following the acquisition, Sierra Wireless and Maingate will offer customers in Europe complete device-to-cloud solutions, with fully integrated hardware, embedded software development tools, cloud-based application development, device and subscription management and wireless services.

All of Maingate’s outstanding shares, including those held by Nordic private equity fund Verdane Capital VI, will be acquired by Sierra Wireless. Sierra Wireless will also retain the company’s M2M business, which includes wireless connectivity services for M2M. 

“The acquisition of Maingate is a strong strategic fit for Sierra Wireless, helping us to accelerate our device-to-cloud mission with the addition of leading edge wireless M2M connectivity and managed services,” said Jason Cohenour, President and Chief Executive Officer, Sierra Wireless. “Maingate has a strong base of top-tier M2M customers and a proven technology platform that we believe will enable market expansion and accelerated services growth through our channels.”

“Joining with Sierra Wireless enables us to accelerate our growth in Europe and broaden our customer base,” said Baard Eilertsen, Chief Executive Officer, Maingate. “Enterprises throughout Europe are looking for efficient ways to connect their assets and digitise their businesses, and the combined offering from Sierra Wireless and Maingate is the perfect solution for that.”