Gemalto's acquisition of Cinterion Wireless Modules GmbH (CWM) to strengthen its M2M credentials has met with approval from analysts.
Cinterion Wireless Modules is the global leader in intelligent cellular M2M communication. The company specialises in short M2M communication and provides modules, platforms and terminals.
Gemalto has acquired the company for a total cash price of 163 million.
Jean-Noel Georges, Frost & Sullivans Global Program Director, Smart Cards, approves of the deal: With this acquisition, Gemalto can offer a complete Machine to Machine (M2M) solution. It means that Gemalto is able to provide the M2M module, especially designed for industrial projects (and for specific countries), and the service solutions from its well-known Over The Air (OTA) platform for secured management of devices.
We believe that the M2M Average Revenue Per User (ARPU) will make sense only if providers are able to sell services and/or integration and maintenance. Due to the vertical ecosystem structure and a lack of standardization for M2M, Gemaltos complete M2M offering overcomes the fragmentation issues and enables customers a lower cost to deploy.
Frost & Sullivan tips M2M market to move from a niche to mass market in the next few years. As such, the number of M2M devices will increase and security will become the next natural step to succeed. Gemalto, being the world leader in digital security, is ready for the next big challenge: to become a leader in M2M security, says Georges.