A Canadian wireless equipment company is buying a Boise high-tech company in a stock and cash deal valued at more than $30 million.
Richmond, British Columbia-based Sierra Wireless said its purchase of CradlePoint Inc. should close in July.
CradlePoint, which employs 40 people in Boise, develops wireless networking products for the cellular industry, including docking cradles, routers and software programs. The privately held company reported $6.5 million in revenue for 2007 and hopes to increase revenue to $25 million in 2008. The companies' announcement did not say whether any Boise jobs would be affected. A call to CradlePoint's chief executive Tuesday afternoon was not immediately returned.
Sierra Wireless is a publicly held company whose stock trades on the Nasdaq stock exchange.
Jason Cohenour, president and CEO of Sierra Wireless, said the CradlePoint purchase will allow Sierra to expand its position in the mobile computing market.
"We believe that adding CradlePoint's mobile broadband networking and docking solutions to our product portfolio extends our offering and value proposition to mobile operators and vertical OEM (original equipment manufacturers) customers," Cohenour said in a statement. "Furthermore, we believe that the mobile broadband networking category is poised for rapid growth, and that CradlePoint brings innovative mobile networking technology and talent to our team."
Sierra Wireless said it will keep CradlePoint in Boise. Pat Sewall, CradlePoint's CEO, will become vice president and general manager of the Sierra Wireless Mobile Broadband Networking Product group in Boise.
"By joining forces with Sierra Wireless, CradlePoint gains immediate access to established global distribution channels, leading-edge mobile broadband technology, product marketing expertise, large-scale supply-chain capabilities and working capital to drive future growth," Sewall said in a statement.
The company is paying $21.8 million and will issue more than 463,000 shares of stock to shareholders of CradlePoint for a total value estimated at $30.2 million.
Sierra announced the purchase Monday. On Tuesday, the company's shares were up 30 cents to close at $18.43. Over the last year the stock has traded between $11.98 and $28.10. In 2007, the company reported nearly $136 million in revenue, nearly double the $68.3 million reported in 2006.
The Idaho Statesman is pleased to offer this opportunity to share information and observations about what's in the news. Some comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate but ask that you remain on topic. Comments that are profane, personal attacks or otherwise inappropriate are subject to removal.
@Nyx.CommentBody@