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Renesas Electronics to Acquire Sequans Communications in $249M Deal, Expanding IoT Products

As the technology landscape continues to evolve, Renesas' strategic acquisition of Sequans Communications underscores its dedication to driving innovation and delivering cutting-edge solutions to address the dynamic needs of the IoT market.

Japanese firm Renesas Electronics has increased their IoT potoflio with Sequans acquisition.
Creator: jamesteohart | Credit: Getty Images/iStockphoto

TOKYO – Japanese semiconductor giant Renesas Electronics has announced its intention to acquire the France-based cellular Internet of Things (IoT) chipmaker, Sequans Communications, in a significant move aimed at bolstering its position in the fast-growing IoT market. The deal, valued at $249 million, is expected to be finalized by the first quarter of 2024, subject to approvals from Sequans' works council and regulatory authorities.


Renesas Electronics Portfolio Expands


Renesas' strategic move aligns with its ambition to enhance its portfolio of microcontrollers, microprocessors, and mixed signal front ends by incorporating Sequans' cutting-edge cellular IoT products and intellectual property. This acquisition will enable Renesas to expand into the wide-area network (WAN) market space, catering to various data rates. Moreover, it will further strengthen Renesas' existing lineup of personal-area (PAN) and local-area network (LAN) connectivity solutions.


This acquisition marks another milestone in Renesas' recent spree of strategic purchases. The company has been on an acquisition spree, acquiring prominent players in the technology landscape. Notable acquisitions include UK-based power management and industrial IoT specialist Dialog (August 2021), Israeli enterprise Wi-Fi chipset and software provider Celeno (December 2021), and Austrian near-field communications (NFC) chip maker Panthronics (June 2023).


Sequans Communications, founded in 2003, specializes in cellular-based low-power wide-area network (LPWAN) solutions, offering advanced technology for NB-IoT, LTE-M, LTE-4G, and 5G-based IoT hardware. Renesas and Sequans have collaborated since 2020, successfully integrating Renesas' embedded processors and analogue front-end products with Sequans' wireless chipsets to deliver solutions for massive IoT and broadband IoT applications.


IoT Products and Applications


According to Renesas, the market for cellular IoT devices is projected to experience annual growth of over 10 percent, fueled by the rising demand for applications such as smart meters, asset tracking systems, smart homes, smart cities, connected vehicles, fixed wireless access networks, and mobile computing devices.

The proposed acquisition demonstrates Renesas' commitment to innovation and its readiness to leverage Sequans' expertise to unlock new possibilities in seamless connectivity and digital mobility.


Renesas President and CEO Hidetoshi Shibata expressed his excitement, stating, "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 evolving customer needs."


Georges Karam, Chairman and CEO of Sequans Communications, echoed this sentiment, emphasizing the transformative potential of the collaboration:


"As many telecom operators around the world continue to invest in 5G infrastructure and with the expanding deployment of IoT applications, combining with Renesas opens up vast opportunities to usher in a new era of seamless connectivity and digital mobility that can transform a multitude of industries."

The $249 million offer represents a 42.3 percent premium over Sequans' recent closing price and 32.6 percent and 7.7 percent premiums over its weighted average prices for the past six and twelve months, respectively. As part of the deal, Sequans will be re-domiciled in Germany by the end of 2024, ahead of the deal's closure, leading to a transition to a privately held company. Sequans' American Depositary Shares (ADS) will be transferred to Renesas under German squeeze-out rules, resulting in the company no longer being publicly listed.


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