Internet of things chipmaker Sierra Wireless is buying platform provider Numerex in an all-stock deal valued at almost $100 million. Sierra Wireless said the purchase will give it new customers and sales capacity.
Shares of Sierra Wireless fell more than 15% following the Thursday announcement, but recovered some of those losses on Friday. The company also released its second quarter earnings on Thursday, which were up 50% year-on-year. At the same time, the module maker disclosed changes in a contract with a major customer in the automotive market, and this news may have helped trigger the selloff.
Shares of Numerex also fell on the news, and also recovered some of their losses on Friday. Numerex is headquartered in Atlanta and had 157 employees as of March, 2017. The company serves eight vertical markets: waste management, oil and gas, manufacturing and distribution, transportation, public safety, emergency management, personal safety and security.
Sierra Wireless is headquartered in Richmond, Canada. It has more than 1,100 employees globally and operates R&D centers in North America, Europe and Asia.
Sierra Wireless is one of the first chipmakers to launch a SIM card that conforms to the GSMA embedded SIM specification. It’s called an embedded universal integrated circuit card, or eUICC, and it allows businesses to change service providers without swapping a SIM card.
