Sierra Wireless has beefed up its M2M credentials by buying-out the M2M business of French tech firm, Sagemcom. Canada-based Sierra has submitted a binding offer to acquire substantially all of the assets of the business for EUR44.9 million in cash consideration plus assumed liabilities.

Sagemcom was an early player in the M2M sector with assets including 2G and 3G wireless modules, and rugged terminals for GSM-Railway (GSM-R) applications.

In a statement, Sierra Wireless said that the acquisition will provide it with a “significantly enhanced market position in key segments, including payment, transportation, and railways, as well as new geographical expansion into Brazil.”

"Combining Sagemcom’s M2M business with Sierra Wireless is a unique opportunity for us to enter new markets and bolster our leadership in wireless M2M communications," said Sierra Wireless CEO Jason Cohenour. "With a strong market position in key segments, a culture of innovation, and experienced teams based in Paris and Shenzhen, Sagemcom M2M is an ideal fit for Sierra Wireless."

Sagemcom’s M2M business generated approximately EUR39.9 million in revenue last year, and is described as “solidly profitable.”

The proposed acquisition remains subject to completion of the consultation process with employee representatives, and is expected to close in Q3.