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Sierra Wireless buys AirPrime

Sierra Wireless has agreed to buy competitor AirPrime in a stock swap valued at approximately $20 million, the two companies announced Monday. Both companies make cellular radios that can be slipped into laptops or personal digital assistants. Sierra Wireless also will provide AirPrime with up to $2 million in capital. The deal is expected to close by August.

Due to slumping sales of wireless services and equipment, analysts expect more consolidation among wireless companies, including the possible merger of two of the top five U.S. cell phone providers.