Sierra Wireless completes sale of AirCard® assets and operations
Transaction enables Sierra Wireless to accelerate growth of machine-to-machine (M2M) business
Vancouver, Canada - April 2, 2013
Sierra Wireless, Inc. (NASDAQ: SWIR) (TSX: SW) today announced it has completed the sale of substantially all of the assets and operations related to its AirCard® business to NETGEAR®, Inc. (NASDAQGM: NTGR) for $138 million in cash plus approximately $5.9 million in assumed liabilities. The transaction was first announced on January 28, 2013. Sierra Wireless’s retained business includes its AirPrime™ embedded wireless modules, AirLink® intelligent gateways, and AirVantage™ M2M cloud product lines.
“Sierra Wireless is now an M2M and connected device pure play, focused on providing innovative device-to-cloud solutions that enable customers across a broad range of markets to connect to the ‘Internet of Things’,” said Jason Cohenour, President and CEO of Sierra Wireless. “This transaction provides significant financial capacity to accelerate our growth in M2M – a market in which we are the world leader today, with the industry’s broadest product lineup, and an extensive, blue-chip customer base.”
Sierra Wireless intends to use a substantial portion of the net proceeds from the transaction to continue its acquisition strategy in the M2M market, with the objective of accelerating revenue and earnings growth by strengthening its leadership in existing markets and expanding its position in the M2M value chain. In addition, Sierra Wireless obtained the approval of the Toronto Stock Exchange in February 2013 for a Normal Course Issuer Bid to re-purchase shares of the Company and has commenced purchases under this program.
About Sierra Wireless
Sierra Wireless (NASDAQ: SWIR) (TSX: SW) offers industry-leading products and solutions for connected devices and machine-to-machine (M2M) communications over cellular networks. Wireless service providers, equipment manufacturers, enterprises and government organizations around the world depend on us for reliable wireless technology. We offer 2G, 3G and 4G wireless modems, routers and gateways as well as a comprehensive suite of software, tools, and services that ensure our customers can successfully bring wireless applications to market. For more information about Sierra Wireless, visit www.sierrawireless.com.
“AirPrime,” “AirLink,” and “AirVantage” are trademarks of Sierra Wireless. Other product or service names mentioned herein may be the trademarks of their respective owners.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply conditions, channel and end customer demand conditions, revenues, gross margins, operating expenses, profits, and other expectations, intentions, and plans contained in this press release that are not historical fact. Our expectations regarding future revenues and earnings depend in part upon our ability to successfully develop, manufacture, and supply products that we do not produce today and that meet defined specifications. When used in this press release, the words "plan", "expect", "believe", and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in the wireless data communications market. In light of the many risks and uncertainties surrounding the wireless data communications market, you should understand that we cannot assure you that the forward-looking statements contained in this press release will be realized.