Semiconductor manufacturer Semtech struck an all cash deal valued at $1.2 billion including debt to buy Canada-based Sierra Wireless and beef up its IoT portfolio.
The US company stated the deal was key to the future of the IoT, by bringing Sierra Wireless’ LPWA technology together with its own LoRa variant. Semtech noted in addition to expanding its addressable market, the deal could also double its annual revenue.
Semtech is forking out $31 a share for Sierra Wireless, a premium of around 25 per cent on its closing price on 29 July.
The company stated combining Sierra Wireless’ cloud expertise with its own would deliver a portfolio providing enhanced security, provisioning, device management and geolocation capabilities for power-optimised IoT applications.
“We believe the next era of technology growth is the full digitisation of our industrial world, the Internet of Everything,” stated Semtech president and CEO Mohan Maheswaran.
He added the acquisition will be “a critical part of bringing this vision to life through the combination of cellular, LoRa and cloud services”.
Semtech and Sierra Wireless’ boards have approved the deal, with customary clearances now to be sought.Subscribe to our daily newsletter Back