Semtech completes $1.2bn acquisition of Sierra Wireless
Californian internet of things (IoT) company Semtech has completed its US$1.2 billion acquisition of Canadian IoT company Sierra Wireless.
Semtech said the transaction will brings together the ultra-low power benefits of LoRa IoT technology with higher bandwidth capabilities of cellular.
Mohan Maheswaran (pictured), Semtech’s president and CEO, said: “Sierra Wireless brings nearly 30 years of leadership in cellular IoT and a strong and diverse device-to-cloud IoT solutions portfolio. 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.”
The transaction nearly doubles Semtech’s annual revenue and adds approximately $100 million of recurring revenues in high-margin IoT cloud services, said Semtech.
Maheswaran said: “Our combined company will have strong expertise in high bandwidth cellular connectivity, ultra-low power LoRa connectivity, IoT software and services, and extensive knowledge of IoT hardware and software channels and vertical markets.”
Former Sierra Wireless senior leaders join the Semtech leadership team in two newly formed business groups.
Tom Mueller joins as executive vice president of the IoT system products group, which includes Semtech’s existing LoRa products business.
Ross Gray joins as vice president of the IoT connected services group.
Pravin Desale also joins Semtech as the senior vice president of IoT engineering
As a result of the completion of the transaction, Sierra Wireless’s common shares will be delisted from the Toronto Stock Exchange. Sierra Wireless asked to be delisted from Nasdaq. Semtech is already Nasdaq-listed.
In August 2022, when the deal was announced, Maheswaran said: “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.”