Semtech Acquires Sierra Wireless for $1.2 Billion
Semtech has acquired Sierra Wireless in a $1.2 billion deal, expanding its IoT product lines and projected to nearly double Semtech’s annual revenue.
The deal is heralded as bringing together two major IoT technologies, LoRa and cellular with the aim of establishing an end-to-end, comprehensive chip-to-cloud platform.
Under the deal, Semtech provides its LoRa-enabled end nodes with Sierra Wireless’ cellular capabilities, which the companies say will provide numerous new IoT use cases.
Anticipated use cases of the IoT portfolio include smart cities and buildings, smart agriculture and utilities including gas and water.
“We believe the next era of technology growth is the full digitization of our industrial world, the Internet of Everything,” said Mohan Maheswaran, Semtech CEO. “Our vision is to build a simple, horizontal platform with the goal of accelerating this transformation and to bring about a smarter and more sustainable planet.”
The combination of the two companies’ technologies is expected to provide new scope for cloud services, with an emphasis on security, device management and geolocation capabilities.
Semtech estimates such services could add more than $100 million to IoT cloud services recurring revenues.