Renesas Electronics, a prominent provider of semiconductor solutions, has revealed its intention to acquire Sequans Communications, a leading innovator specializing in 5G and 4G cellular Internet of Things (IoT) chips and modules. This strategic move is aimed at reinforcing Renesas’ presence within the thriving IoT market and expanding its offerings in the realm of connectivity.
With the acquisition deal valuing Sequans Communications at a total of $249 million, inclusive of a $52 million debt, the transaction’s completion is projected for the first quarter of the calendar year 2024. This hinges on regulatory approvals and customary closing conditions.
Renesas plans to integrate Sequans’ state-of-the-art cellular connectivity solutions and intellectual property into its core product portfolio, which encompasses microcontrollers, microprocessors, analog, and mixed-signal front ends. By doing so, the company aspires to leverage the potential of IoT technology across a wide range of applications. This strategic step will facilitate Renesas’ entry into the Wide Area Network (WAN) market space, catering to diverse data rate requirements. Additionally, it will enhance Renesas’ offerings in the Personal Area Network (PAN) and Local Area Network (LAN) connectivity segments.
The rapid expansion of cellular IoT applications, spanning smart meters, asset tracking systems, smart homes, connected vehicles, smart cities, fixed wireless access networks, and mobile computing devices, has generated a heightened demand for advanced solutions similar to those developed by Sequans Communications.
Georges Karam, Chairman, and CEO of Sequans, said: “As many telecom operators continue to invest in 5G infrastructure and with the expanding deployment of IoT applications, combining with Renesas opens up vast opportunities to usher in a new era of seamless connectivity and digital mobility that can transform a multitude of industries.”
Hidetoshi Shibata, President and CEO of Renesas, said: “Sequans is a leader in the fast-growing cellular IoT market with wide cellular IoT network coverage. The company’s technology gives Renesas a path to offer connectivity capabilities across IoT applications to address the evolving customer needs.”