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Sierra Wireless Reaches Agreement To Acquire Sagemcom M2M

Sierra Wireless (NASDAQ: SWIR) (TSX: SW) today announced it has entered into an exclusivity agreement for the acquisition of Sagemcom’s machine-to-machine (M2M) business. Sierra Wireless has submitted a binding offer to acquire substantially all of the assets of the business for €44.9 million in cash consideration plus assumed liabilities.

The proposed acquisition remains subject to completion of the consultation process with employee representatives. This process is expected to commence immediately and, when complete, Sagemcom will be able to enter into a definitive agreement with Sierra Wireless. The companies expect this to occur in the third quarter.

Sagemcom, a leading French high-technology group active in broadband, telecom, energy, and document management, was an early entrant in the M2M market. The company has successfully built a growing M2M franchise that includes 2G and 3G wireless modules, as well as industry-leading rugged terminals for GSM-Railway (GSM-R) applications. Sagemcom M2M offers Sierra Wireless a significantly enhanced market position in key segments, including payment, transportation, and railways, as well as new geographical expansion into Brazil.

“Combining Sagemcom’s M2M business with Sierra Wireless is a unique opportunity for us to enter new markets and bolster our leadership in wireless M2M communications,” said Jason Cohenour, President and CEO of Sierra Wireless. “With a strong market position in key segments, a culture of innovation, and experienced teams based in Paris and Shenzhen, Sagemcom M2M is an ideal fit for Sierra Wireless.”

Sagemcom’s M2M business generated approximately €39.9 million in revenue and was solidly profitable during the twelve-month period ended December 31, 2011. Sierra Wireless plans to fund the purchase price out of cash reserves and the acquisition is expected to be immediately accretive to Non-GAAP earnings. More detailed financial information will be provided when Sierra Wireless presents its second quarter results on August 2.

Conference Call, Webcast and Instant Replay Details

Sierra Wireless President and CEO, Jason Cohenour, and CFO, David McLennan, will host a conference call and webcast with analysts and investors to review the announcement on Monday, June 18, 2012, at 8:00 AM Eastern Standard Time (5:00 AM PST). A live slide presentation will be available for viewing during the call from the link provided below.

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