Canadian telecommunications equipment maker Sierra Wireless has acquired fleet telematics provider GenX Mobile Inc. in a cash deal for $7.8 million, the company has announced.
Sierra Wireless, which is based in Vancouver, Canada, produces mobile broadband devices, wireless gateways and routers, while GenX Mobile designs and manufactures wireless data equipment for telematics, security, and fleet service companies. GenX Mobile provides in-vehicle communication platforms that enable wireless connectivity and location-based data.
Sierra completed its acquisition of the privately-held GenX Mobile on Aug. 3 for a total cash consideration of $7.8 million and a net of $6 million. GenX is based in San Jose and has 22 employees.
"We believe that the acquisition of GenX expands our strategic position in key market segments and bolsters our telematics and location capabilities," said Jason Krause, senior vice president and general manager of the Enterprise Solutions Business unit. "The GenX business and team will be integrated with our Enterprise Solutions business unit."
In the first half of 2016, GenX recorded revenue of approximately $6.7 million and non-GAAP earnings from operations were approximately breakeven.
Originally posted on Automotive Fleet