Sierra Wireless, the Canadian technology company specializing in Internet of Things (IoT) devices and services, completed its acquisition of Numerex, a US-based IoT solutions provider, for $130m on December 7, 2017.
| Acquirer | Target | Value (USD) | Type | Closing Date |
|---|---|---|---|---|
| Sierra Wireless | Numerex | 130m | acquisition | 2017-12-07 |
The deal was advised on by RBC Capital Markets (buy-side) and Equiteq Securities (sell-side).
Deal Mechanics
Sierra Wireless acquired Numerex for a total consideration of $130m, which included cash and equity instruments. The transaction was designed to enhance Sierra Wireless' IoT offerings by integrating Numerex's established customer base and its comprehensive set of solutions.
Strategic Rationale
The acquisition aims to accelerate Sierra Wireless' IoT device-to-cloud strategy. By incorporating Numerex’s extensive experience in IoT services, Sierra Wireless seeks to strengthen its position in the market by leveraging an already robust customer base and recurring revenue streams that complement its existing offerings.
Financial Context
Sierra Wireless's decision was driven by a desire to expand its reach into new verticals within the IoT space. Numerex’s strong portfolio of solutions, including connected healthcare and smart cities applications, offers Sierra Wireless access to an expanded market segment with high growth potential.
Advisors
RBC Capital Markets advised Sierra Wireless on financial matters, while Equiteq Securities represented the interests of Numerex. Legal counsel for Sierra Wireless was provided by Blake Cassels & Graydon and Skadden Arps Slate Meagher & Flom (buy-side), with Arnold & Porter Kaye Scholer acting as legal advisors to Numerex.
Outlook
The integration of Numerex into Sierra Wireless is expected to create a more robust IoT platform, offering enhanced connectivity and device management solutions. This strategic move positions Sierra Wireless to better serve the growing demand for scalable, secure IoT services across diverse sectors.