Sierra Wireless buys MobiquiThings for €14m to spur growth of IoT managed connectivity services

Vancouver, British Columbia & Sophia Antipolis, France — Canada’s Sierra Wireless and MobiquiThings, a European mobile virtual network operator (MVNO), have announced that Sierra Wireless has definitively agreed to acquire MobiquiThings for €14 million in cash.

MobiquiThings is an MVNO focused on managed connectivity services for the Internet of Things (IoT), with broad segment experience including the energy, transportation, security, retail, and healthcare markets. MobiquiThings’ technology platform includes MobiquiSIM, a dynamic attachment service that is said to provide its customers with superior radio access network coverage and industry leading quality of service (QoS), as well as SIM (subscriber identity module) provisioning and management for 2G, 3G, and 4G connectivity. The company has more than 75 customers and more than 100,000 wireless connectivity subscribers.

“The purchase of MobiquiThings further accelerates our device-to-cloud strategy and is highly complementary to our acquisition of Wireless Maingate completed in January,” said Jason Cohenour, president and CEO of Sierra Wireless (NASDAQ:SWIR) (TSX:SW). “MobiquiThings has a highly advanced core network and technology platform, as well as a rapidly expanding customer base. MobiquiThings will be tightly integrated with Maingate and our AirVantage® cloud to provide a leading-edge managed connectivity service for pan-European customers.”

(Also see: Sierra Wireless extends its managed connectivity services offering with acquisition of Accel Networks, and
Sierra Wireless expands into M2M connectivity services with US$90m acquisition of Maingate.)

Cyril Hullin, co-founder and CEO of MobiquiThings, said: “Since founding the company in 2010, we have been focused on developing an advanced wireless connectivity platform, including a secure and resilient mobile core network platform, integrated information systems and seamless best-in-class multi-operator connectivity. As we rapidly grow our position in the IoT market, we are very excited to be able to combine our technology and service offerings with Sierra Wireless, given the strong strategic fit between the companies.”

Sierra Wireless has agreed to purchase all of the shares of MobiquiThings for €14 million in cash, plus a performance-based earnout formula that extends into 2017. The transaction is expected to close in August 2015.

In 2015, MobiquiThings is expected to generate revenue of approximately €3.0 million and breakeven on adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation).

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