Sierra Wireless Acquires AirLink Communications

By Spencer D. Chin

TMCnet Web Editor

 

Sierra Wireless Inc. has announced a definitive agreement to acquire AirLink Communications (News - Alert) Inc., a privately-held supplier of fixed, portable and mobile wireless data solutions for industrial and public safety applications, for cash and stock.

 

Under the agreement, Sierra Wireless (News - Alert) will pay $10.0 million in cash and issue 1.3 million shares to AirLink’s shareholders. As a result of the combination, AirLink shareholders will hold approximately 4.8% of the combined company, based on the issued and outstanding shares.

Sierra Wireless, a provider of wide area wireless solutions for mobile computing, expects the acquisition of AirLink to help expand its line of high-margin, leading edge wireless products for mobile computing as well as rugged, intelligent mobile and M2M connectivity solutions.

 

Founded in 1993, AirLink is located in Hayward, Calif., and has 50 full time employees. The company earned $3.9 million on revenues of $24.8 million in 2006.

 

"The acquisition of AirLink Communications is consistent with our strategy of renewing and strengthening our emphasis on higher gross margin products and solutions," said Jason Cohenour, president and chief executive of Sierra Wireless, in a statement. "We believe that combining AirLink's leading modem and software products business with our rugged MP product line creates a focused, well-positioned leader in the mobile and machine to machine (M2M) segments of our market.”

 

The combined business will be integrated under a single team comprised of managers of both companies. It will be headquartered in Richmond, B.C., Canada.