Qualcomm lately announced to be acquiring 4G IoT technology from France-based Sequans Communications to strengthen its Industrial Internet of Things (IoT) capabilities. The acquisition is said to be a strategic move as it will help the company in strengthening its position in the growing IoT market, particularly in industrial applications.
The acquisition mainly includes specific technology, employees as well as the licenses. The acquisition reveals commitment of Qualcomm to enhance its IoT offerings. More advanced IoT solutions could be offered in the future to cater the needs of enterprise customers.
Qualcomm Automotive, Industrial, and Embedded IoT division General Manager Nakul Duggal talked about the importance of the acquisition. He said the acquisition is to position the company as one of the largest and most promising sectors in the world. He further highlighted that combining existing capabilities of Qualcomm with the technology of Sequans is to help them in offering more robust solutions for the Industrial IoT market.
Sequans stands to benefit significantly too with the acquisition. It will retain a perpetual license to continue using its 4G IoT technology. It will be allowed to maintain and expand its existing 4G business. It will also get financial resources and flexibility to focus on its ambitions in the AI-powered IoT and 5G spaces.
The financial terms of the acquisition are not yet disclosed. The deal is expected to close after the customary conditions are met.
The acquisition is not just a business transaction, but it is a strategic move for both the companies that highlight the importance of innovation as well as collaboration in the tech industry. Qualcomm is to expand its product portfolio and simultaneously to set the stage for future growth in the IoT market.
