Why Sierra Wireless Stock Was on Fire Monday
Internet of Things (IoT) connectivity solutions provider Sierra Wireless (NASDAQ: SWIR) was a hot stock on Monday but not because of its fundamentals. The company is the subject of buyout speculation; this chatter had pushed its share price up by nearly 18% in mid-afternoon trading that day.
Monday morning, Bloomberg reported that Sierra's peer Semtech (NASDAQ: SMTC) is in "advanced talks" to acquire the company. Citing "people familiar with the matter," the financial news provider said that a deal between the two companies could be announced within days.
The article did not speculate as to how much such a deal could be worth. At the moment, Sierra's market cap is slightly over $1.1 billion. Semtech is more than three times larger. As of the end of April, Semtech had nearly $290 million in cash and short-term investments, and $197 million in long-term debt.
Source Fool.com
