Tokyo-based Renesas Electronics, a semiconductor solutions provider, announced on Monday that it has entered into a memorandum of understanding (MoU) with Paris-based Sequans Communications, a company that claims to be a leader in 5G/4G cellular IoT chips and modules.
Renesas intends to acquire Sequans through a tender offer of $3.03 per ADS in cash, subject to approval from the Sequans Board and works council.
The deal values Sequans at around $249M, including net debt, and is expected to be finalised in the first quarter of 2024.
Aim of this acquisition
Renesas plans to integrate Sequans’ wide range of cellular connection devices and intellectual property (IP) in its product lineup. This will include microcontrollers, microprocessors, analogue and mixed-signal front ends, and microcontrollers.
Renesas will also be able to increase its market share in the Wide Area Network (WAN) sector, which includes a variety of data rates. Additionally, it will expand Renesas’ existing extensive line of PAN and LAN connection solutions.
Georges Karam, Chairman and CEO of Sequans, says, “As many telecom operators around the world 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.”
Renesas’ acquisition of Sequans is part of its strategy to expand connectivity offerings through strategic acquisitions. They have been collaborating since 2020 to deliver integrated solutions for massive IoT and broadband IoT applications, combining Renesas’ processors with Sequans’ wireless chipsets.
Provider of cellular IoT connectivity solutions
Founded in 2003, Sequans is a fabless semiconductor firm focused on designing chipsets and modules for IoT devices.
Sequans specialises in low-power wireless devices and provides chipsets and modules for IoT applications.
The company’s products offer extensive 5G/4G cellular connectivity options, including 5G NR, Cat 4, Cat 1, and LTE-M/NB-IoT, providing reliable wireless connectivity for IoT without the need for a gateway.
Their solutions support massive IoT with low data rates and are certified to meet the regulatory specifications of major carriers in North America, Asia-Pacific, and Europe.
Besides Paris, Sequans also has offices in the US, UK, Israel, Hong Kong, Singapore, Finland, Taiwan, South Korea, and China.
Brief about Renesas
Renesas Electronics Corporation is a global provider of microcontrollers, offering complete semiconductor solutions that aim to create a safer, smarter, and more sustainable future.
The company’s expertise lies in embedded processing, analog, power, and connectivity technologies.
Renesas’ semiconductor solutions accelerate time to market for automotive, industrial, infrastructure, and IoT applications, leading to billions of connected and intelligent devices that improve people’s lives.
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