Sierra Wireless is looking to turn its leadership of embedded cellular modules into pure gold as the ‘internet of things’ starts to become a reality. Its latest move is to pay $5.9m for nearly all the assets of AnyData’s M2M module and modem business.
The deal, which should close this month, will add AnyData’s products to Sierra’s OEM Solutions portfolio and a team of 16 sales and engineering staff from the firm’s Korean subsidiary will join Sierra. AnyData’s embedded business generated around $10m in revenue over the past year and is ‘modestly profitable’, according to the acquirer’s presentation to investors.
Sierra was once most famous for dongles but exited that business at the start of this year, when it sold its AirCard unit to Netgear, having ceded the personal hotspot space to rival Novatel. The two firms, once bracketed together, have pursued diverging courses, with Sierra increasingly focused on M2M, a sector about which it got really serious in 2009 with the acquisition of Wavecom, from under the nose of counter-bidder Gemalto.
By June 2010, Sierra was in the lead in the market for cellular M2M modules and remains in the position now, with 34% share in 2012, according to ABI Research. Its business now revolves around three main product lines – the AirPrime embedded modules, AirLink intelligent gateways and routers, and AirVantage M2M cloud platform.
Having made $144.5m from its Netgear deal, Sierra has said it would look out for acquisitions in the M2M field. During the company’s first quarter earnings call, CEO Jason Cohenour said that his objective was ‘to accelerate growth and value creation through a targeted M&A strategy. We have an excellent track record of acquiring great companies, integrating them well and creating value for shareholders. We intend to extend this track record.”