Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Netgear to Buy Sierra Wireless' AirCard Business

On Monday, Netgear (NASDAQ: NTGR  ) announced that it has agreed to acquire "select assets and operations" of Sierra Wireless' (NASDAQ: SWIR  ) AirCard mobile broadband device business.

Netgear will pay approximately $138 million cash to acquire "customer relationships, certain intellectual property, inventory and fixed assets of the Sierra Wireless AirCard." Regulators permitting, the deal is expected to close in March.

Sierra Wireless said the deal covering "substantially all" of the AirCard business also includes roughly $6.5 million in assumed liabilities. Some 160 employees will be transferred to Netgear. Sierra Wireless expects to realize net cash proceeds of approximately $100 million from the sale and use proceeds to continue its acquisition strategy in the machine-to-machine (M2M) market.

Netgear describes the deal as helping to make it "a global leader in providing the latest in LTE data networking access devices." More concretely, the company estimates that AirCard will bring with it an annual revenue stream of approximately $247 million. Moreover, Netgear believes the acquisition should be accretive to non-GAAP earnings in the first full quarter that Netgear operates the AirCard business.

In unrelated news, Netgear noted that prior to acquiring AirCard, it expects its own Q4 2012 earnings will show quarterly revenues of between $305 million and $310 million, and that pro forma operating margins will exceed 11%.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2221668, ~/Articles/ArticleHandler.aspx, 9/26/2016 8:23:04 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:00 PM
NTGR $59.08 Down -0.43 -0.72%
Netgear CAPS Rating: ****
SWIR $13.85 Down -0.30 -2.12%
Sierra Wireless CAPS Rating: *****