- A path to offer broad connectivity capabilities across IoT applications
- This acquisition will provide a wide expansion in connectivity products
Recently, a memorandum of understanding (MoU) has been signed between Renesas Electronics Corporation and Sequans Communications.
By following the MoU, Renesas will acquire Sequans’ all outstanding ordinary shares, including American Depositary Shares (ADS), for $3.03 per ADS in cash. The transaction values Sequans at approximately $249 million, including net debt, and is expected to close by the first quarter of calendar year 2024.
After that, Renesas has planned to integrate Sequans’ breadth of cellular connectivity products and IP into its core product lineup, including microcontrollers, microprocessors, and analog and mixed signal front ends. This partnership will help it to automatically expand its business to the Wide Area Network (WAN). Not only that, Renesas’s reach towards Personal Area Network (PAN) and Local Area Network (LAN) connectivity products will increase.
“We are thrilled to take our partnership with Sequans to the next level,” said Hidetoshi Shibata, President and CEO of Renesas. “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 broad connectivity capabilities across IoT applications to address the evolving customer needs.”
“We have been working closely with Renesas to serve the growing market demand for massive IoT and broadband IoT customers,” said Georges Karam, Chairman and CEO of Sequans. “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.”
This acquisition will provide a vast expansion in connectivity products to Renesas.
