Machine-to-machine wireless network services provider Numerex Corp has completed its acquisition of M2M solutions developer Omnilink for US$37.5m in cash.
Numerex said the acquisition will enable it to expand its position in the fast-growing security…
Machine-to-machine wireless network services provider Numerex Corp has completed its acquisition of M2M solutions developer Omnilink for US$37.5m in cash.
Numerex said the acquisition will enable it to expand its position in the fast-growing security and safety, tracking and monitoring market segments.
Founded in 2004, Omnilink develops a number of tracking and monitoring products for businesses, consumers and government agencies.
The company offers a SaaS (Software-as-a-Service) recurring revenue model, selling to and through market leaders across a number of industries. Its SaaS-based recurring revenues of US$11m accounted for the majority of its US$13m of total sales for 2013.
Commenting on the acquisition, Stratton Nicolaides, CEO and chairman of Numerex, said: “We are combining two highly talented and seasoned teams who have been addressing the needs of the M2M and Internet of Things (IoT) marketplace since the industry’s inception.
“We see the combination of Omnilink and Numerex as unique in that it creates significant growth opportunities through product enhancement and channel expansion. We expect this transaction will strengthen our development roadmap in key enterprise verticals and will serve as a foundational step in our long-term growth strategy to be the market leader in select M2M solutions.”
Numerex will fund the transaction through cash-on-hand and a US$25m term loan to be provided by its relationship bank Silicon Valley Bank.
The vertical acquisition is Numerex’s most significant transaction for a number of years. Its last strategic deal was in February 2013 when it acquired AVIDWireless and undisclosed critical remote monitoring assets for less than US$5m.
