Brendan Rose • 17 Comments
Helix Investment Research • 59 Comments
Jun. 23, 2015, 4:50 PM
- Sierra Wireless (NASDAQ:SWIR) is buying MobiquiThings, a French provider of managed connectivity services for M2M/IoT devices to European companies, for €14M ($15.6M) in cash.
- MobiquiThings provides its services by acting as an MVNO; devices receiving its connectivity services rely on proprietary SIM cards. The company claims 75+ customers and 100K+ wireless connectivity subscriptions. With MobiquiThings expected to produce 2015 revenue of €3M ($3.4M), Sierra is paying less than 5x forward sales.
- Sierra calls the purchase "highly complementary" to last year's $90M acquisition of Swedish M2M connectivity/messaging services firm Wireless Maingate, and says MobiquiThings services will be integrated with both Maingate's and Sierra's AirVantage M2M cloud software/services solution.
- In May, the company announced a deal to buy U.S. M2M connectivity services firm Accel Networks.
May 7, 2015, 5:21 PM
- Though it beat Q1 estimates, Sierra Wireless (NASDAQ:SWIR) is guiding for Q2 revenue of $153M-$156M and EPS of $0.21-$0.24, below a consensus of $157M and $0.25.
- Sierra has also announced it's buying Accel Networks, a Florida-based provider of M2M connectivity services (enabled by a proprietary 4G antenna) for 300+ enterprise customers. The deal is expected to close in June (it's not factored into guidance); terms are undisclosed for now.
- Accel has been using Sierra's hardware to enable its services for years; AT&T, Verizon, and Sprint serve as Accel's network partners. Sierra declares the purchase "will accelerate our device-to-cloud strategy and add significant scale and capabilities to our services business." It follows a December deal to buy Swedish M2M connectivity/messaging services firm Wireless Maingate.
- OEM revenue rose 25.2% Y/Y in Q1 to $133M; enterprise revenue rose 15.8% to $17.4M. Gross margin (non-GAAP) rose 60 bps Y/Y to 32.6%, and operating expenses rose by $2.2M to $40.2M.
- After initially trading lower AH, Sierra is now up 1.9% to $37.50.
- Q1 results, PR
Mar. 12, 2015, 6:02 PM
- 2lemetry's cloud-based platform serves as middleware for large networks of Web-connected embedded devices - the proverbial Internet of Things (IoT). It translates the various protocols used by connected devices, sets messaging rules, and analyzes the data traffic it handles to derive insights.
- The startup boasts its solution can work with any protocol or hardware platform, automatically add new devices as they join a network, and scale to millions of devices without hurting performance. Honeywell is among the company's enterprise clients.
- Amazon (NASDAQ:AMZN) has bought 2lemetry for an undisclosed sum, and says it will continue supporting the company's clients. 2lemetry's services appear to complement AWS' Kinesis service, which provides real-time processing for massive data streams, including for data produced by IoT devices and sensors.
- TechCrunch notes 2lemetry's Incoming service might particularly interest Amazon - it helps companies (such as retailers) interact with customers using data obtained via proximity beacons, geofencing, facial recognition, and other sources.
- Though better known for their machine-to-machine (M2M) communications hardware, Sierra Wireless (NASDAQ:SWIR) and CalAmp (NASDAQ:CAMP) are two companies that have been going after the budding IoT service market. Sierra recently bought M2M connectivity/messaging service provider Wireless Maingate, and CalAmp has launched its Connect service platform for deploying and managing M2M devices.
Dec. 22, 2014, 10:33 AM
- Sierra Wireless (NASDAQ:SWIR) is acquiring Wireless Maingate, a Swedish provider of M2M connectivity and messaging services for 500+ European clients, for $90M in cash. The deal is expected to close in February.
- With Maingate forecasting 2014 revenue of over $19M (to go with EBITDA of $6M), Sierra is paying less than 5x sales. The purchase is expected to be immediately accretive to earnings.
- Maingate's services connect over 500K M2M devices, and are paired with a service management platform for handling customer interactions. The company also has a data management business (focused on energy services) that will be retained by current shareholders.
- Sierra, already a major provider of M2M hardware, plans to use Maingate to offer European firms "complete device-to-cloud solutions, with fully integrated hardware, embedded software development tools, cloud-based application development, device and subscription management, and wireless services."
- M2M rival Novatel (MIFI +3.1%) is also higher today.
Jan. 28, 2013, 5:16 PM
Sierra Wireless (SWIR) is selling its AirCard business to NetGear (NTGR) for $138M in cash. SWIR says it intends to use the proceeds to continue its acquisition strategy in the M2M market, and is exploring ways to return part of the proceeds to shareholders. NTGR says the deal provides the latest in LTE data networking access devices.| Jan. 28, 2013, 5:16 PM
Jun. 18, 2012, 9:48 AM
Sierra Wireless (SWIR -1%) is acquiring the 2G/3G machine-to-machine (M2M) wireless module business of France's Sagemcom for £44.9M ($70.3M) in cash + assumed liabilities. The acquisition bolsters Sierra's existing M2M ops, putting it on better footing to compete with Novatel (NVTL) and others. It also lowers Sierra's dependence on a fiercely competitive, low-margin, 3G/4G modem business.| Jun. 18, 2012, 9:48 AM