(Yicai Global) Dec. 22 -- Sunsea Telecommunications Co. plans to buy the wireless communications units under Shanghai-based SIM Technology Group Ltd. for CNY518 million (USD79 million) to enhance its technology in the Internet of Things.

Shenzhen-based Sunsea penned a deal with the telecoms giant to buy outright two of SIM Technology's subsidiaries, which are the main operators of its wireless business, the buyer said in a statement yesterday.

SIM Technology was one of China's first companies to enter the wireless sector. The combined shipments of the two target divisions topped world rankings for the past two years, and the units have set up overseas sales networks in North and South America, Europe and Asia Pacific regions, Sunsea said.

The deal will mark an important step in the buyer's development plans for the Internet of Things, as wireless modules are an integral component in IOT devices. Sunsea forecasts the growth rate of new IOT terminals will surge by more than 30 percent over the next 10 years, and believes market demand will soar.

Sunsea also invested USD25 million in October in US-based IOT firm Ayla Networks Inc., taking a 9.09-percent stake in the company. The two firms plan to found a joint venture in Shenzhen to set up a local service platform for the Internet of Things.