Sierra Wireless to acquire Wavecom for €218m

Sierra Wireless to acquire Wavecom for €218m

In early-October, Wavecom announced that Gemalto's unsolicited offer to take over the company reflected neither its intrinsic value nor prospects. Gemalto made an all-cash offer of €7 per share to Wavecom's shareholders and €20 per convertible bond (OCEANE) to bond holders.

Sierra Wireless has announced that it will make a cash offer of €8.50 per ordinary share of Wavecom and €31.93 per OCEANE convertible bond, amounting to an aggregate purchase price of approximately €218 million.

Wavecom's board of directors has unanimously determined that the proposed acquisition is in the best interest of the company, its employees, and, subject to consideration of a fairness opinion, its shareholders.

In addition, Wavecom's founders have committed to tender all of their shares to Sierra Wireless, representing approximately 21% of the outstanding shares, in support of the transaction.

The combination of both companies will create a market leader in wireless data, uniquely positioned to benefit from the anticipated growth in wireless data for the mobile computing and M2M markets – which are expected to grow to more than 200 million units by 2012.

According to Sierra Wireless president & CEO Jason Cohenour, the acquisition of Wavecom will boost Sierra's plans to substantially expand its position in the global M2M market, and will also significantly increase its scale and capabilities in Europe and Asia.

The transaction is expected to be implemented by way of concurrent but separate public tender offers in both France and the US for all Wavecom shares, all American Depositary Shares representing Wavecom's ordinary shares, and all OCEANEs issued by Wavecom.


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