Semtech Corporation Completes Acquisition of Sierra Wireless
January 20, 2023
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.
“Sierra Wireless brings nearly 30 years of leadership in cellular IoT and a strong and diverse device-to-Cloud IoT solutions portfolio," says Mohan Maheswaran, Semtech’s president and CEO. "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.”
Former Sierra Wireless senior leaders join the Semtech leadership team in two new business groups. Ross Gray joins as vice president of the IoT Connected Services Group. Tom Mueller joins as executive vice president of the IoT System Products Group, which includes Semtech’s existing LoRa products business. Pravin Desale also joins Semtech as the senior vice president of IoT Engineering driving product development of our new systems and solutions.
13548597 Canada Inc., a Semtech Corporation subsidiary, has acquired all of Sierra Wireless' outstanding common shares for US$31 per share via statutory plan of arrangement. Consideration for the purchased shares has been paid to Computershare Investor Services Inc., as depositary under the arrangement, and will be provided to former shareholders as soon as reasonably practicable in accordance with the terms of the arrangement agreement.
As a result of the acquisition's completion, Sierra Wireless’ common shares will be delisted from the Toronto Stock Exchange. Additionally, Sierra Wireless requested that The Nasdaq Stock Market file a delisting application on Form 25 to report the delisting of the company's common shares from Nasdaq. With the completion of the transaction, an application will be made for Sierra Wireless to cease to be a reporting issuer in the applicable Canadian jurisdictions. Sierra Wireless expects to terminate the registration of its common shares under the U.S. Securities Exchange Act of 1934, as amended, approximately 10 days after the closing of the transaction.
For more information, visit Semtech.