Semtech to acquire Sierra Wireless
Semtech and Sierra Wireless have entered into a definitive agreement under which Semtech will acquire all outstanding shares of Sierra Wireless for USD 31 per share in an all-cash deal valued at USD 1.2 billion.
The acquisition will significantly expand Semtech’s addressable market and is expected to approximately double Semtech’s annual revenue and create a strong portfolio of connectivity solutions for the IoT market.
The deal is also expected to generate USD 40 million of run-rate operational synergies within 12-18 months following the closure of the transaction.
This acquisition brings together two important technologies for the future of IoT – LoRa and cellular – to enable the digitisation of the industrial world with a comprehensive chip-to-Cloud platform. Semtech expects the combination of Sierra Wireless’ cellular capabilities across its modules, gateways and managed connectivity together with Semtech’s LoRa-enabled end nodes to create a differentiated IoT portfolio that will enable a plethora of new IoT use cases to be conceived.
“This exciting strategic acquisition of Sierra Wireless is a critical part of bringing this vision to life through the combination of cellular, LoRa and Cloud services. Together, with the world-class Sierra Wireless engineering team, we will be positioned to advance the market with multi-radio solutions that bring new chip-to-Cloud services to support customers and grow our business,” says Semtech president and chief executive officer, Mohan Maheswaran, in a press release.
Sierra Wireless brings complementary skills and capabilities to Semtech, including its modules, gateways, 5G, and Cloud services.
“Over the last year, Sierra Wireless has taken decisive steps to profitably grow the business, and I am proud that the progress we have made has culminated in this exciting transaction. Together with Semtech, we will be able to extend the reach of IoT solutions by scaling, optimizing and ultimately delivering an even stronger product portfolio and service model to customers,” adds Phil Brace, president and chief executive officer of Sierra Wireless. “Sierra Wireless is a high growth business with some of the best, most advanced IoT technology in the industry, and we are pleased to deliver immediate and compelling value to our shareholders through this transaction.”