The IoT solution provider, Sierra Wireless (NASDAQ: SWIR) (TSX: SW) has signed and closed a definitive agreement to divest its Omnilink offender monitoring business to Anaheim-based Sentinel Advantage LLC, wholly owned by Bison Capital Asset Management LLC. The deal is worth US$37.6 million in cash.
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.
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.
