The board of Paris-based Wavecom, a provider of embedded wireless technology for machine-to-machine communications, has approved an offer to be bought by Vancouver's Sierra Wireless. The offer was first made in December. The price wasn't spelled out in the press release announcing the move, but Sierra said it wants to buy all outstanding shares and convertable bonds. It's offering 8.50 euros per share and 31.93 euros per bond plus unpaid accrued interest.
The offers are subject to the condition that, following the expiration of the offers, Sierra Wireless will have acquired the right to hold shares representing at least 50 percent plus one of all voting rights of Wavecom securities. Sierra said it has received commitments from Wavecom's founders of Wavecom to tender all of their shares to the offer, which represent approximately 21 percent of the outstanding shares, in support of the transaction.
The offer expires Feb. 12. If the transaction is completed, the combined companies said they will form a market leader in wireless data including modems and agreements with original equipment makers.