Sierra Wireless has entered into a definitive agreement to acquire Sweden-based Maingate for US $90 million in cash. The transaction is expected to close in February 2015.
“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, Sierra Wireless President and CEO. “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.”
Maingate provides managed M2M connectivity and information management services, the company expects 2014 revenue of over US $19 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) of US $6 million. Sierra Wireless expects the transaction to be immediately accretive to earnings.
“Joining with Sierra Wireless enables us to accelerate our growth in Europe and broaden our customer base,” said Baard Eilertsen, CEO of Maingate. “Enterprises throughout Europe are looking for efficient ways to connect their assets and digitize their businesses, and the combined offering from Sierra Wireless and Maingate is the perfect solution for that.”