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Sierra Wireless to sell AirCard business to Netgear

2013-01-29 07:46:00| Telecompaper Headlines

(Telecompaper) Canada-based mobile and wireless modem manufacturer Sierra Wireless has agreed to sell substantially all of the assets and operations related to its AirCard business to networking company Netgear for USD 138 million in cash plus approximately USD 6.5 million in assumed liabilities. Netgear said the deal will help it expand in the service provider market and offer a range of LTE data networking devices. The acquired activities have an annual run rate of USD 247 million in revenues, and Netgear expects the business to add to adjusted earnings in the first full quarter after the takeover. Netgear also said that it expects its tax rate for the fourth quarter to be higher than expected, at around 40 percent rather than its earlier guidance of 33 percent. Sierra expects to realize net cash proceeds of approximately USD 100 million from the asset sale, which it will devote to further expansion in M2M and a possible share buyback.

Tags: business sell wireless sierra

Category:Telecommunications

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