Sagem (News - Alert) Communications, a French technology company focused on broadband communications and convergence, has entered into an agreement to acquire the broadband and WiMAX business of Gigaset Communications, a subsidiary of Arques Industries and Siemens (News - Alert).

This is the first acquisition for Sagem Communications since it was acquired by private equity firm the Gores Group in January 2008. The deal will not only expand Sagem’s customer base, it will also allow it to offer new technologies.

In a release, Patrick Sevian, president of Sagem Communications (News - Alert), said the “the global customer footprint and the excellent R&D capabilities of Gigaset will significantly enhance our positioning and the value we provide to our customers."

Gigaset Communications will now focus on distribution of cordless DECT (News - Alert) phones.

"The voice business is our core competence and the foundation of our market leadership,” said JosE Costa e Silva, CEO of Gigaset Communications. “That is why we focus on our strengths as a well-established, modern and innovative manufacturer of telephones. We are delighted that with Sagem Communications we have found a proficient and well positioned partner in the broadband business."

Sagem Communications has 6,570 employees and posted sales of 1.3 billion euros in 2008.

Sagem Communications made news last week when it announced the availability of the HiLoNC M2M module, which the company claims is the smallest M2M module in the world (a surface of 24x24 mm, a height of 2.6 mm and weighing less than 3 grams). The HiLoNC is designed for applications driven by size limitations (track and trace, metering, point of sale terminals and security and alarms). There’s also a specific variant for automotive market.