Sierra Wireless, backed by Lion Point Capital, has sold its Omnilink offender monitoring business to Sentinel Advantage for $37.6 million. Sentinel, an Anaheim, California-based provider of customized electronic monitoring solutions, is owned by Bison Capital Asset Management. Based in Vancouver, Sierra is an internet-of-things solutions company.
April 18, 2022
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.