VANCOUVER, BRITISH COLUMBIA: Semtech Corporation (Nasdaq: SMTC) has accomplished the acquisition of Sierra Wireless Inc. (Nasdaq: SWIR) in an all-cash transaction representing a complete enterprise worth of roughly US$1.2 billion.
This transaction nearly doubles Semtech’s annual income and provides roughly US$100 million of high-margin IoT Cloud services recurring revenues. Semtech expects the acquisition to be instantly accretive to non-GAAP EPS and to generate US$40 million of run rate operational synergies inside 12-18 months post close.
“Sierra Wireless brings nearly 30 years of management in mobile IoT and a strong and diverse device-to-Cloud IoT solutions portfolio. Combined with Semtech’s LoRa-enabled finish nodes, we believe we’re thoroughly positioned to ship a extremely differentiated, end-to-end platform to allow the transformation to a smarter, extra sustainable planet,” said Mohan Maheswaran, Semtech’s president and chief executive officer.
“Our mixed firm will have strong experience in excessive bandwidth mobile connectivity, ultra-low energy LoRa connectivity, IoT software program and services, and extensive knowledge of IoT hardware and software program channels and vertical markets. We believe that Semtech is uniquely positioned to ship a strong product portfolio and repair mannequin to customers throughout excessive growth IoT segments.”
Former Sierra Wireless senior leaders join the Semtech management team in two newly formed enterprise groups. Tom Mueller joins as executive vice president of the IoT System Products Group, which incorporates Semtech’s existing LoRa merchandise business.
Ross Gray joins as vice president of the IoT Connected Services Group. Pravin Desale additionally joins Semtech because the senior vice president of IoT Engineering driving product development of our new systems and solutions.
Semtech Corporation (Nasdaq: SMTC) is a high-performance semiconductor, IoT systems and Cloud connectivity service supplier devoted to delivering excessive high quality technology options that allow a smarter, extra connected and sustainable planet.