Sierra Wireless Completes Divestiture of Automotive Embedded Module Product Line
November 18 2020 - 11:00AM
Business Wire
Sierra Wireless (NASDAQ: SWIR) (TSX: SW) (the “Company” or
“Sierra Wireless”), the leading IoT solutions provider that
combines devices, network services and software to unlock value in
the connected economy, today announced it has completed the
previously announced sale of its Shenzhen, China-based automotive
embedded module product line to Rolling Wireless (H.K.) Limited
(“Rolling Wireless”) for US$165 million in cash. The sale of the
automotive product line includes approximately US$19 million of
cash and is subject to normal working capital adjustments.
“This divestiture of the Automotive product line enables Sierra
Wireless to strengthen our focus and success in investment in our
IoT Solutions that deliver high-value recurring revenue,” said Kent
Thexton, President and CEO of Sierra Wireless. “Completing the
transaction also gives us financial strength as we expand our
position in the growing IoT solutions market as well as broaden our
portfolio of new 5G modules and gateways for the Enterprise and
Mobile Broadband markets.”
The automotive embedded modules were developed in China by
Sierra Wireless and manufactured in China by outsourced contract
manufacturers for sale to global electronics companies for
integration into new vehicles assembled in China, Europe, and
Mexico. Approximately 150 of the Company’s employees located in
Mainland China, Europe and in the Asia Pacific region are becoming
employees of Rolling Wireless upon the closing of the
transaction.
The divested Automotive product line was a part of the Company’s
Embedded Broadband reporting segment. Sierra Wireless has exited
automotive applications but will continue to invest in high-speed
cellular modules used in Enterprise and Mobile Broadband
applications. These retained products include 4G LTE and
LTE-Advanced cellular embedded modules that are ordered in large
volumes as well as our new industry-leading 5G modules the company
announced in the Fourth Quarter this year.
About Sierra Wireless
Sierra Wireless (NASDAQ: SWIR) (TSX: SW) is the leading IoT
solutions provider that combines devices, network and software to
unlock value in the connected economy. Companies globally are
adopting IoT to improve operational efficiency, create better
customer experiences, improve their business models and create new
revenue streams. Whether it is a solution to help a business
securely connect edge devices to the cloud, or a software/API
solution to help manage processes associated with billions of
connected assets, or a platform to extract real-time data to make
the best business decisions, Sierra Wireless will work with you to
create the right industry-specific solution for your next IoT
endeavor. Sierra Wireless has more than 1,300 employees globally
and operates R&D centers in North America, Europe and Asia. For
more information, visit www.sierrawireless.com.
Sierra Wireless is a trademark of Sierra Wireless. Other product
or service names mentioned herein may be the trademarks of their
respective owners.
Cautionary Note Regarding Forward-Looking Statements
Certain statements and information in this press release
constitute forward-looking statements or forward-looking
information within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 and Canadian securities laws
(“forward-looking statements”) with respect to the transaction,
including statements with respect to the Company’s future business
prospects, performance and growth program, expectations regarding
product launches in the Fourth Quarter of this year; expectations
regarding trends and growth in the IoT market and wireless module
market and the Company’s expected use of proceeds. Although Sierra
Wireless believes these statements are based on information and
assumptions which are current, reasonable and complete, these
statements are necessarily subject to a variety of risks and
uncertainties, including stock exchange and securities regulatory
matters. A further discussion of the risks and uncertainties facing
Sierra Wireless are discussed in its Annual Information Form and
Management’s Discussion and Analysis of Financial Condition and
Results of Operations, which may be found on SEDAR at www.sedar.com
and on EDGAR at www.sec.gov and in Sierra Wireless’ other
regulatory filings with the Securities and Exchange Commission in
the United States and the provincial securities commissions in
Canada. While Sierra Wireless makes these forward-looking
statements in good faith, should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary significantly from those
expected, depending on the outcome of certain factors, including
the possibility that the anticipated benefits of the sale will not
be realized or will be not be realized within the expected
timeframe. Except as may be required by applicable securities laws,
Sierra Wireless assumes no obligation to publicly update or revise
any forward-looking statements made herein or otherwise, whether as
a result of new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20201118005832/en/
David Climie, Investor Relations dclimie@sierrawireless.com Kim
Homeniuk, Media Relations pr@sierrawireless.com
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