Sierra Wireless to buy Wavecom for $276.1 million

The companies said the board of Wavecom, a French maker of machine-to-machine wireless technology, approved the deal unanimously. Wavecom's founders have agreed to tender all their shares, about 21 percent of shares outstanding, to Sierra Wireless.

Sierra Wireless has agreed to pay 8.50 euros ($10.76) per share to Wavecom stockholders, about 6.5 percent over Tuesday's trading price. The company said it will pay 31.93 euros ($40.43) for each of Wavecom's convertible bonds.

Sierra Wireless plans to close the transaction in the first quarter of 2009 using cash and available credit and will continue to operate the Wavecom business unit in Paris.

Sierra Wireless fell 57 cents, or 7.4 percent, to $7.19, in midday trading while Wavecom's stock rose $1.35, or 15 percent, to $10.21.