01/27/2014 10:15 EST | Updated 03/29/2014 05:59 EDT

Sierra Wireless to pay US$21 million cash for router maker In-Motion Technology

VANCOUVER - Wireless technology company Sierra Wireless (TSX:SW) has signed a friendly deal to buy In Motion Technology Inc. for US$21 million in cash.

In Motion makes rugged and secure mobile routers for vehicles.

It generated US$15 million of revenue in 2013, with a gross margin of 50 per cent of revenue.

Sierra, which makes a range of communications equipment, says the businesses are complementary and the deal will broaden and strengthen its portfolio.

Sierra says it is aiming for between US$112 and US$116 million of revenue for its fourth quarter, according to guidance released in November.

The deal, which requires court approval, is expected to close in early March.