Wavecom to acquire Sony Ericsson’s M-to-M business

Wavecom said Monday it has reached an agreement to acquire the M-to-M (machine-to-machine) communication business unit run by Sony Ericsson Mobile Communications for as much as €32.5 million ($39.6 million).

Wavecom, which is based in Paris, expects to finalize the deal by the end of March, it said in a statement.

The deal is a sign of consolidation in the M-to-M market, which focuses on communication between devices and machines, including the automotive and industrial wireless products that make up the focus of the Sony Ericsson division.

Sony Ericsson’s M-to-M communication business unit, which is headquartered in North Carolina, is comprised of research and development teams, marketing and sales personnel, and a series of products, all of which will become part of Wavecom, the company said. Wavecom expects 90 employees from the M-to-M unit to join its ranks due to the acquisition.

Any assets or activities from the M-to-M unit related to Sony Ericsson’s mobile phones, accessories, or PC card business will remain part of Sony Ericsson, Wavecom said.

In 2005, Sony Ericsson’s M-to-M unit generated revenue of €65 million ($79.3 million), but operated at a loss, Wavecom said. The company expects the purchase to weigh on its profitability in the near term, adding that potential restructuring costs are currently not available.