Machine-to-machine (M2M) wireless network services provider Numerex Corp has made two bolt-on acquisitions in a week. The company has snapped up M2M engineering services specialist AVIDwireless for an undisclosed amount and certain critical remote…
Machine-to-machine (M2M) wireless network services provider Numerex Corp has made two bolt-on acquisitions in a week. The company has snapped up M2M engineering services specialist AVIDwireless for an undisclosed amount and certain critical remote monitoring assets, technology and intellectual property, including a portfolio of patents, from an undisclosed company for US$3.9m.
Numerex said that the purchase of AVIDwireless, which will have minimal financial impact in 2013, would bolster its carrier-grade M2M engineering solutions.
The second acquisition, which focuses on critical remote monitoring, contains some revenue-generating assets, including technology in IP and satellite communications. Numerex said that the US$3.9m consideration was allocated about evenly between goodwill and intangible assets and included approximately US$2m in seller-financing.
To help fund the deals, Numerex secured an amendment to its existing loan agreement with Silicon Valley Bank back in November 2012 that included a US$10m acquisition line.
The company also completed a share offering at the end of January 2013, raising US$26m through the issue of 2,315,000 common shares at US$11.25 per share.
Numerex stated at the time that it intends to use the net proceeds from the financing for working capital and general corporate purposes, including to repay certain indebtedness.
Needham & Company was the sole book-running manager on the offering, with Craig-Hallum Capital Group co-manager and Northland Capital Markets financial adviser to the company.
