VANCOUVER - Wireless technology company Sierra Wireless (TSX:T.SW
, Stock Forum
) has signed a friendly deal to buy In Motion Technology Inc. for US$21 million in cash.
In Motion makes rugged and secure mobile routers for vehicles.
It generated US$15 million of revenue in 2013, with a gross margin of 50 per cent of revenue.
Sierra, which makes a range of communications equipment, says the businesses are complementary and the deal will broaden and strengthen its portfolio.
Sierra says it is aiming for between US$112 and US$116 million of revenue for its fourth quarter, according to guidance released in November.
The deal, which requires court approval, is expected to close in early March.
Sierra stock was down 5.2% on the news.