France-based cellular IoT chip maker Sequans Communications has acquired Swiss firm Advanced Circuit Pursuit (ACP) for an undisclosed fee. ACP produces integrated circuits, radio frequency (RF) transceivers, and systems-on-chip (SoCs) for cellular IoT and 5G mobile broadband modules. The deal will help Sequans’ reduced-capability 5G (5G RedCap) proposition, it said. The firm has placed its total faith in the burgeoning RedCap market, optimised for lower-power IoT through further reduced (‘enhanced’) eRedCap capabilities, following the sale of its 4G/LTE portfolio to Qualcomm last year.
Georges Karam, chairman and chief executive at Sequans, said: “The 5G eRedCap market is expected to surpass 4G IoT in scale, and this acquisition strengthens Sequans’ ability to capture this expanding market opportunity.” Zurich-based ACP brings with it a “small team”, a “robust” IP portfolio, and expertise in circuit-based metal oxide semiconductor (CMOS) technology, integrating RF, analogue, and digital electronics. As well as bringing “leadership” in eRedCap development, the deal will also accelerate its time-to-market for new eRedCap IoT chips, it said.
A statement said: “ACP’s proven radio technology and successful track record in selling its technology across various wireless market segments are expected to create new growth opportunities for Sequans. The acquisition brings a small, highly skilled team to Sequans with minimal impact on the company’s planned operating expenses for 2025. The acquisition is expected to generate modest revenue in 2025 and potentially contribute several million dollars in 2026 through ACP’s existing customer relationships.”
Georges Karam, chairman and chief executive at Sequans, said: “We are thrilled to welcome the ACP team to Sequans. Their advanced, ready-to-use technology and engineering expertise perfectly complement our existing capabilities and will be instrumental in driving our product innovations forward.”
Qiuting Huang, chief executive at ACP, said: “Joining Sequans marks a pivotal moment for the ACP team. Sequans’ pioneering leadership in cellular IoT provides an ideal platform for integrating our technologies and accelerating innovation in the 5G IoT product roadmap.”
Sequans retains a perpetual licence to continue to develop and sell its old 4G/LTE IoT portfolio, as part of its deal in August with Qualcomm. But its essential research and commercial focus has shifted to 5G-based IoT technologies, notably RedCap and eRedCap. Qualcomm said the deal strengthens its position in “intelligence at the edge”. Karam said at the time: “With a robust balance sheet, proven technology and a comprehensive portfolio that includes low-power LTE-M/NB-IoT, LTE Cat 1bis and upcoming 5G Redcap/eRedCap technology, Sequans is very well positioned.”
The firm was close to selling to Renesas Electronics early last year. A $249 million deal had been agreed, but the Japanese firm terminated the deal because of an “adverse Japanese tax ruling”, apparently about the fee it would be required to pay on “taxable gain” after integration of the Sequans business following its purchase. Sequans responded that it was business-as-usual, and that it had alternative options. “Strong customer relationships and the unique capabilities of its technology [mean we are] optimistic… to grow market share and expand revenue streams,” it said.
Meanwhile, IoT tracker maker GearTrack has said it will use the French firm’s flagship Monarch 2 GM02S LTE-M /NB-IoT module in its supply chain management solution, sold to freight and shipping companies to monitor cargo. Its IP67-rated sensors work in harsh environments, as well as indoors; its platform integrates with sundry enterprise resource planning (ERP), product lifecycle management (PLM), and manufacturing execution systems (MES) software to deliver alerts and insights about supply-chain assets.
Peyton Riley, chief technology officer at GearTrack, said: “Sequans’ Monarch module is a game-changer for us. Its superior connectivity and power efficiency enable us to offer GearTrack as a solution that not only meets but exceeds our customers’ expectations, providing rapid ROI and driving innovation in asset management.”
Karam said: “Our Monarch module was engineered for excellence in low-power LTE-M/NB-IoT connectivity. This collaboration underscores our commitment to empowering businesses with cutting-edge technology that ensures seamless, energy-efficient connectivity. We’re excited to support GearTrack in providing a robust, easy-to-implement solution for critical industrial assets.”
