Gemalto Acquires Cinterion Wireless Modules

Gemalto, a major player in digital security, has acquired Cinterion Wireless Modules GmbH, a provider of industrial Machine-to-Machine wireless communication modules.

 

Cinterion, which uses a fabless business model, employs 335 staff with major centers in Munich and Berlin, Germany. The business was started by Siemens in 1995 and spun out to a financial sponsor consortium in 2008.

 

Officials with Gemalto said that combining Cinterion's M2M module technology with the company's expertise in deploying software and services for mobile network operators will provide simple to deploy M2M solutions with proven security and demonstrated remote "over-the-air" management of devices for industrial companies, for administrations and for mobile network operators which are increasingly seeking to offer M2M communication services. 

 

Gemalto will pay €163 million or $199 million in cash for the CWM business, approximately one time annual sales. The closing of the transaction is expected within the next six weeks.

 

"We are taking the leadership position in a fast growing market, the market of Smart Machines that paves the way to the 'internet of things'" commented Olivier Piou, chief executive officer of Gemalto, in a statement.

 

Piou said that together with Cinterion the company can address the strong interest of the largest customers, the mobile network operators in M2M and team up with them to offer the M2M market the right combination of advanced software, premium devices and remote management services that has historically been successful in the company's SIM card business.

 

He said that Cinterion is a high-quality company, with an impressive track record of market leadership, excellent management and strong values.

 

"We look forward to accelerating their development in Gemalto", said Piou.  

 

"We are very pleased to join Gemalto" said Norbert Muhrer, Chief Executive Officer of Cinterion.

 

Muhrer said that Gemalto has the financial strength and management vision to deliver on the potential of the M2M market and will provide the ideal growth platform for the company.

 

"We will continue to run our M2M module business and serve our customers as in the past, while leveraging Gemalto's strong relationship with mobile operators and excellent capabilities in remote device management to facilitate M2M roll out", he said.

 

Muhrer said that this combination represents a unique offering in the market.