Renesas Electronics Corporation, a supplier of advanced semiconductor solutions, and Sequans Communications S.A. (NYSE: SQNS), a manufacturer of 5G/4G cellular IoT chips and modules, announced yesterday that the two companies have entered into a memorandum of understanding.
Renesas said it will commence a tender offer to acquire all outstanding ordinary shares of Sequans for approximately $249 million in cash, including net debt. The deal is expected to close by the first quarter of calendar year 2024, subject to confirmation of tax treatment from relevant authorities, regulatory approvals and other customary closing conditions.
Upon closing of the transaction, Renesas intends to integrate Sequans’ breadth of cellular connectivity products and IP into its core product lineup, including microcontrollers, microprocessors, analog and mixed signal front ends. The acquisition is designed to allow Renesas to expand its reach to the Wide Area Network market space encompassing a broad range of data rates. It will also serve to enhance Renesas’ portfolio of Personal Area Network and Local Area Network connectivity products.
“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.”
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