Semtech Corporation and Sierra Wireless, Inc. said that Semtech has finished buying Sierra Wireless in an all-cash deal that is worth about US$1.2 billion to the business as a whole. The acquisition positions Semtech as the leading provider of low-power, wide-area (LPWA) wireless IoT solutions, enabling it to better serve customers and markets across the globe.
This nearly doubles Semtech's annual revenue and adds about $100 million in high-margin recurring revenue from IoT cloud services. The acquisition should immediately boost non-GAAP EPS and generate US$40 million in operational synergies within 12–18 months.
Mohan Maheswaran, Semtech’s president and chief executive officer, said, “Sierra Wireless brings nearly 30 years of leadership in cellular IoT and a strong and diverse device-to-cloud IoT solutions portfolio." He added, "Combined with Semtech’s LoRa-enabled end nodes, we believe we are very well positioned to deliver a highly differentiated, end-to-end platform to enable the transformation to a smarter, more sustainable planet." He further added, “Our combined company will have strong expertise in high bandwidth cellular connectivity, ultra-low power LoRa connectivity, IoT software and services, and extensive knowledge of IoT hardware and software channels and vertical markets." "We believe that Semtech is uniquely positioned to deliver a strong product portfolio and service model to customers across high growth IoT segments.”
The companies expect to enable the transformation to a smarter, more sustainable planet by creating a comprehensive Internet of Things (IoT) platform. By combining Semtech’s hardware-centric technologies with Sierra Wireless’ cloud-based software and services and advanced data analytics capabilities, the platform will provide customers with a unique, end-to-end IoT solution.
About Semtech Corporation
, a global leader in high-performance analog and mixed-signal semiconductors and advanced algorithms, provides solutions for infrastructure, high-end consumer, and industrial equipment. With 60 years of experience in designing and manufacturing proprietary platforms, the company is known for its innovative, efficient, and high-performing products. Original equipment manufacturers (OEMs) and their suppliers use their balanced portfolio of semiconductor products for a wide range of applications, such as in cars, data centers, the Internet of Things (IoT), and wireless infrastructure. Since its founding in 1960 as a manufacturer of high reliability products, Semtech has grown to become a multinational technology innovator, developing solutions that promote safety, productivity, sustainability, and social responsibility. The company's highly skilled teams work to develop new products that solve complex design challenges, making a positive impact on the world.