Sierra Wireless divests automotive embedded modules to Rolling Wireless, reinforcing focus on high‑margin IoT solutions

Sierra Wireless has agreed to divest its automotive embedded module product line for $165 million to Rolling Wireless (H.K.), a consortium led by Shenzhen‑based Fibocom Wireless.

The divested product line falls under Sierra Wireless’ embedded broadband division. While the company will exit automotive applications, it will deepen investment in its remaining high‑speed cellular modules, including 4G LTE, LTE‑Advanced and forthcoming 5G offerings slated for release in Q4 2020. These modules will support enterprise‑grade IoT gateways, routers and integrated solutions.

Automotive modules are engineered in China and manufactured by contract partners for global OEMs that assemble vehicles in China, Europe and Mexico. No Canadian or U.S. personnel, operations or assets are part of the transaction.

Approximately 150 Sierra Wireless employees will transition to Rolling Wireless—120 based in Mainland China and 30 spread across Europe and the APAC region.

"This divestiture allows Sierra Wireless to sharpen our focus on fully integrated IoT solutions that deliver high‑value recurring revenue," said Kent Thexton, president and CEO. "The transaction strengthens our balance sheet and fuels expansion of our R&D centre in Richmond, British Columbia, accelerating innovation in 5G modules, gateways and routers."

With a clearer emphasis on its higher‑margin IoT business unit, Sierra Wireless will target key industrial and enterprise markets across North America, Europe and the APAC region. The enhanced financial profile positions the company to capture the broader multi‑billion‑dollar IoT solutions opportunity.

Rolling Wireless is 49% owned by Fibocom Wireless and the remaining 51% by three prominent Chinese investment firms.