Sierra Wireless is buying European mobile virtual network operator (MVNO) MobiquiThings to give its Internet of Things ambitions a boost.
Sierra Wireless Inc. (Nasdaq: SWIR; Toronto: SW) will pay €14 million (US$15.7 million) in cash for the operator with a perfomance-based bonus that extends through 2017. The deal is expected to close in August.
MobiquiThings is a French startup MVNO formed in 2010. MVNOs run over other operators' radio networks but handle their own customer service and back office interactions. MobiquiThings says it is particularly focused on enabling machine-to-machine (M2M) communications across many operator networks worldwide.
The basis of its IoT service is the "MobiquiSIM" global SIM card. It claims that the card is already supported by multiple operators across the globe. It says that it runs over 100 M2M fleets for customers.
In 2015, MobiquiThings is expected to generate revenue of about €3 million and break-even adjusted EBITDA.
Sierra Wireless already makes many of the radio modules made in M2M devices. This acquisition, however, will springboard the vendor into the MVNO space.
— Dan Jones, Mobile Editor, Light Reading