In the wake of Semtech Corporation's acquisition of Sierra Wireless, the company unveiled a refreshed brand reflecting its revitalized focus on sustainable IoT solutions. With the acquisition, Semtech's Cloud-to-chip portfolio has expanded to include products and services like semiconductors, software, cellular modules and routers, and connected services for digital transformation.
CAMARILLO, CALIFORNIA, and VANCOUVER, BRITISH COLUMBIA. Semtech's all-cash transaction amounts to a total enterprise value of around US$1.2 billion, almost doubling Semtech’s yearly revenue and adding about US$100 million of recurring revenue in high-margin IoT Cloud services. Semtech expects the acquisition to be immediately accretive to non-GAAP EPS and to generate US$40 million of run rate operational synergies within a year and a half.
Semtech Corporation, a global supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms, and Sierra Wireless, Inc., an Internet of Things (IoT) solutions provider, announced a definitive agreement under which Semtech will acquire all outstanding shares of Sierra Wireless for US$31 per share in an all-cash transaction representing a total enterprise value of approximately US$1.2 billion, subject to customary closing conditions.
Individually, the various components that make up an IoT system are well understood:
- A sensor that captures data
- A serial bus that communicates data to an edge processor
- An edge processor that writes data to memory
- A wireless link like cellular that transmits data to a local or remote cloud
- A web dashboard that allows users to observe data as information and do something with it
Sierra Wireless’ IoT background is helping enable Mobile Viewpoint to bring their next-generation 5G mobile video encoder to market.