RESEARCH TRIANGLE PARK, N.C. — Sony Ericsson Mobile Communications AB, a business unit focused on machine-to-machine wireless communications technology, is being sold to a French firm.

The group has some 90 employees, most of whom are based in RTP.

Wavecom

is buying the group in a deal worth some $39.6 million. The deal is expected to close at the end of the month.

The

Sony Ericcson

unit generated $79.3 million in revenues in 2005 but was not profitable, according to Wavecom.

"This event marks the first consolidation of two major players in the wireless M2M space," said Ron Black, chief executive officer of Wavecom. "It will strengthen the industry and should accelerate the adoption of industry standards which are needed to stimulate overall market growth." The deal does not include any technology or products related to Sony Ericsson mobile phones, accessories or PC card business. Anders Franzen, the executive in charge of the Sony Ericsson unit being acquired, will become vice president and chief operations officer for Wavecom.

"The combination of these two organizations represents a coming of age of the M2M space," Franzen said in a statement. "It brings together Wavecom's software expertise and Sony Ericsson's hardware platform and market presence. Our existing and new customers will have the opportunity to fully capitalize on the unique advantages offered by the combined business."

Sony Ericsson launched its machine-to-machine efforts in 2002.