Mergers & Acquisitions
Original Press Release
Sierra Wireless, Inc. Completes Acquisition of AirLink Communications, Inc.
Press release date: May 25, 2007
VANCOUVER, May 25: Sierra Wireless, Inc. (NASDAQ: SWIR)(NASDAQ:TSX:)(NASDAQ:SW) announced today that it has completed the acquisition of AirLink Communications, Inc. ("AirLink"), a privately-held developer and supplier of high value fixed, portable and mobile wireless data solutions for industrial and public safety applications. AirLink achieved solid growth with revenue of $24.8 million in 2006, compared to $19.8 million in 2005. AirLink had earnings from operations of $3.9 million in 2006 and gross margin of 44%. The combination joins AirLink, a leading provider of fixed, portable and mobile wireless connectivity devices, embedded software and remote device management software, with Sierra Wireless, a leading provider of wide area wireless solutions for mobile computing. The combined entity is expected to be a leader in mobile computing as well as rugged, intelligent mobile and M2M connectivity solutions. Sierra Wireless paid cash consideration of $11.0 million, plus $1.0 million for customary closing adjustments and issued approximately 1.3 million shares to the shareholders of AirLink. The business will be fully integrated under a single management team, comprised of both Sierra Wireless and AirLink personnel. The business will continue under the Sierra Wireless name, will be headquartered in Richmond, British Columbia and will be led by Jason Cohenour, President and Chief Executive Officer. Andrew Berman, AirLink's CEO, will become the Senior Vice-President and General Manager of the Sierra Wireless "Mobile and M2M" business segment. About Sierra Wireless Sierra Wireless (NASDAQ:SWIR)(NASDAQ:-)(NASDAQ:TSX:)(NASDAQ:SW) develops and markets wide area wireless solutions for mobile computing. The Sierra Wireless product portfolio includes the award-winning AirCard(R) line of wireless modems, embedded modules for original equipment manufacturers (OEMs), and the MP line of rugged, vehicle-mounted wireless modems. Sierra Wireless also offers professional services to OEM customers during product development, leveraging the company's expertise in wireless design and integration to provide built-in wireless connectivity for notebook computers and other portable computing devices. Sierra Wireless is headquartered in Richmond, British Columbia, Canada, with additional offices in Carlsbad, California, London, and Hong Kong. For more information about Sierra Wireless, please visit www.sierrawireless.com. Source: Sierra Wireless, Inc. CONTACT: Sierra Wireless, Inc. David G. McLennan, Chief Financial Officer, (604) 231-1185; Website: www.sierrawireless.com; Email: email@example.com; INDUSTRY: CMT