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Semtech in ‘advanced’ talks to buys Sierra Wireless, parties confirm

Note, this article has been superseded (see report here), following conclusion of the agreement between Semtech and Sierra Wireless.

US and Canadian firms Semtech and Sierra Wireless have confirmed they are engaged in “advanced discussions” about a potential transaction, with Semtech looking to purchase Sierra Wireless at a price of $31 per share.

The pair released nearly identical statements, simultaneously, following a report last night (August 1) in Bloomberg that a deal is close, possibly closing in days. Bloomberg said Sierra Wireless was valued at $1.2 billion on Monday, with a 19 percent surge following the news; Semtech was valued at $3.7 billion, down around six percent.

Sierra Wireless stated: “No assurance can be given that the company will determine to continue such discussions or enter into any definitive agreement regarding any transaction or, if executed, whether any such transaction would be consummated. The company does not intend to make any further announcement regarding these matters unless and until it enters into a binding, definitive agreement with respect thereto.”

Camarillo-based Semtech supplies high-performance analog and mixed-signal semiconductors and advanced algorithms for infrastructure, high-end consumer and industrial equipment, according to its boiler-plate marketing. It also owns and licences the non-cellular LoRa/LoRaWAN technology for low-power wide-area (LPWA) IoT applications.

Sierra Wireless, headquartered in Vancouver, in Canada, sells IoT devices, network services, and software. It has offices and operations in California, Sweden, Korea, Japan, China, Taiwan, France, Australia, New Zealand and Hong Kong. The firm sells mobile computing and M2M products, says its own blurb.

ABOUT AUTHOR

Juan Pedro Tomás
Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.