Sierra Wireless to buy AirLink

TORONTO --Sierra Wireless Inc., a maker of wireless laptop cards, Tuesday said it will buy AirLink Communications Inc., a privately held developer and supplier of wireless data solutions, for $27 million in cash and stock.

Sierra said Howard, Calif.-based AirLink had 2006 revenue of $24.8 million and earnings from operations of $3.9 million.

Sierra, which is based in Vancouver, British Columbia, will pay $10 million in cash and issue about 1.3 million shares to AirLink holders. That will give AirLink shareholders about 4.8 percent of the combined entity.

Sierra shares closed Tuesday up 55 cents, or 4.2 percent, at $13.44 on the Nasdaq Stock Market.

The sale is expected to close by the end of June.

Sierra expects the acquisition to increase its revenue and add to earnings by the end of the year, excluding integration costs.