RCR Wireless News' Matt Kapko reports that Sierra Wireless has announced it will acquire M2M (machine-to-machine) vendor AirLink Communications for $10 million in cash and 1.3 million in shares.

"The deal is notable as it signals Sierra's move into the machine-to-machine business," Kapko writes. "Sierra primarily makes its business in selling wireless modems and modules to handset makers and other electronics companies. The M2M market -- where objects like gas meters or vending machines wirelessly transmit readings to a central monitoring station -- stands as a new opportunity for the company."

"We believe that combining AirLink's leading modem and software products business with our rugged MP product line creates a focused, well-positioned leader in the mobile and M2M segments of our market," says Sierra Wireless CEO Jason Cohenour.

Key competition in the M2M arena includes Kyocera, Wavecom and others.

More here from the AP ... more here from TMCnet ... and Sierra Wireless' press release is here.