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Sierra Wireless Completes Divestiture of Offender Monitoring Business for US$37.6 Million
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Rhea-AI Summary
Sierra Wireless (NASDAQ: SWIR) has finalized the sale of its Omnilink offender monitoring business for US$37.6 million in cash to Sentinel Advantage LLC. This transaction allows Sierra to divest a non-core asset and enhance its balance sheet. In 2021, Omnilink generated revenues of US$13.1 million. Post-sale, Sierra will continue providing connectivity services to Omnilink and approximately 27 employees will transfer to Sentinel. The company will share further details during its earnings call on May 11, 2022.
Positive
Divestment of non-core asset increases cash reserves by US$37.6 million.
Continued relationship with Sentinel Advantage for connectivity services.
Negative
None.
VANCOUVER, British Columbia--(BUSINESS WIRE)--
Sierra Wireless (NASDAQ: SWIR) (TSX: SW) (the “Company”), a world leading IoT solutions provider, today announced it has signed and closed a definitive agreement to divest its Omnilink offender monitoring business for US$37.6 million in cash. The purchaser of the business is Anaheim-based Sentinel Advantage LLC which is wholly owned by Bison Capital Asset Management LLC.
Omnilink provides cellular connectivity services, leading edge 4G ankle bracelets, and a cloud-based software tracking platform. Following the close of the transaction, Sierra Wireless will continue to provide Omnilnk with connectivity services and embedded modules for the ankle bracelets.
“The sale of Omnilink unlocks value of a non-core asset and strengthens our balance sheet,” said Phil Brace, President and CEO of Sierra Wireless. “We look forward to continuing to work closely with Sentinel as a valuable, growing customer.”
Omnilink’s revenue in 2021 was US$13.1 million. Sierra Wireless expects approximately 27 of its employees will become employees of Sentinel Advantage LLC. The sale of Omnilink is subject to normal working capital adjustments.
The Company will provide additional information about the transaction on May 11, 2022 during its First Quarter 2021 earnings conference call.
Telegraph Hill Advisors LLC acted as financial advisors to Sierra Wireless and Blake, Cassels & Graydon LLP acted as legal counsel. Sheppard Mullen acted as legal counsel for both Sentinel Advantage and Bison Capital.
About Sierra Wireless
Sierra Wireless (NASDAQ: SWIR) (TSX: SW) is a world leading IoT solutions provider that combines devices, network services, and software to unlock value in the connected economy. Companies globally are adopting 4G, 5G, and LPWA solutions to improve operational efficiency, create better customer experiences, improve their business models, and create new revenue streams. Sierra Wireless works with its customers to develop the right industry-specific solution for their IoT deployments, whether this is an integrated solution to help connect edge devices to the cloud, a software/API service to manage processes with billions of connected assets, or a platform to extract real-time data to improve business decisions. With more than 25 years of cellular IoT experience, Sierra Wireless is the global partner customers trust to deliver them their next IoT solution. For more information, visit www.sierrawireless.com.
“Sierra Wireless” is a registered trademark of Sierra Wireless, Inc. Other product or service names mentioned herein may be the trademarks of their respective owners.
Forward Looking Statements
This press release contains forward-looking statements. When used in this press release, the words "plan", "expect", "believe", and similar expressions generally identify forward-looking statements. These statements reflect our current expectations but involve risks and uncertainties. These statements may relate to, among other things: plans and timing for the introduction or enhancement of our products and services, plans to provide ongoing services to Omnilink Sentinel Offender Services LLC, the transition of certain employees to Sentinel Offender Services LLC, and other expectations, intentions, and plans that are not historical fact. These statements are subject to numerous risks and uncertainties surrounding our business and the markets we operate in, including, but not limited to, supply conditions, future market conditions, changes in technology and market conditions and our ability to implement our strategy and successfully develop, manufacture and supply new products and services. A further discussion of the risks and uncertainties facing Sierra Wireless are discussed in its Annual Information Form and Management’s Discussion and Analysis of Financial Condition and Results of Operations, which may be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov and in Sierra Wireless’ other regulatory filings with the Securities and Exchange Commission in the United States and the provincial securities commissions in Canada. Due to these many risks and uncertainties we cannot assure you that the forward-looking statements contained in this press release will be realized. Except as may be required by applicable securities laws, Sierra Wireless assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
