Semtech Corporation, a global supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms, will acquire Sierra Wireless world-renowned Internet of Things (IoT) solutions provider for $1.2 billion.
As per the news, the acquisition will significantly expand Semtech’s addressable market and is expected to approximately double Semtech’s annual revenue and create a strong and diverse portfolio of connectivity solutions for the growing IoT market, making it easier for customers to find innovative end to end solutions for any segment.
The acquisition brings together two important technologies for the future of IoT, LoRa and cellular, to enable the digitisation of the industrial world with a comprehensive chip-to-cloud platform.
Semtech expects the combination of Sierra Wireless’ cellular capabilities across its modules, gateways and managed connectivity together with Semtech’s LoRa-enabled end nodes to create a uniquely differentiated IoT portfolio which will enable a plethora of new IoT use cases to be conceived.
In addition, the combination of Sierra Wireless’ Cloud services offerings and Semtech’s LoRa Cloud™ services will bring together a future Cloud services portfolio offering that will include enhanced security, provisioning, device management, and geolocation capabilities for power optimised IoT applications.
This new Cloud services capability is expected to add greater than $100 million of high-margin IoT Cloud services recurring revenues immediately.
“We believe the next era of technology growth is the full digitisation of our industrial world – the Internet of Everything. Our vision is to build a simple, horizontal platform with the goal of accelerating this transformation and to bring about a smarter and more sustainable planet,” said Semtech president and chief executive officer, Mohan Maheswaran.
“This exciting strategic acquisition of Sierra Wireless is a critical part of bringing this vision to life through the combination of cellular, LoRa and Cloud services. Together, with the world-class Sierra Wireless engineering team, we will be positioned to advance the market with multi-radio solutions that bring new chip-to-Cloud services to support customers and grow our business.”
“Together with Semtech, we will be able to extend the reach of IoT solutions by scaling, optimising and ultimately delivering an even stronger product portfolio and service model to customers,” said Phil Brace, president and chief executive officer of Sierra Wireless.”
