Renesas to acquire Seguans to boost IoT technology offerings. Renesas is acquiring Sequans, a leading Cellular Internet of Things (IoT) Technology company to offer more comprehensive IoT solutions than before.
The move was made just this past week, through a tender offer, solidifying Renesas’s hold on its IoT solutions base. The two companies have entered into a memorandum of understanding (MoU). The MoU lays out the terms of the agreement and if accepted by the Sequans Board of Directors Renesas will commence a tender offer.
The tender offer will allow Renesas to acquire all outstanding ordinary shares, including the American Depository Shares (ADS) for $3.03 USD per ADS, which represent four ordinary shares. The total valuation of this transaction will place Sequans at $249 million. That transaction includes net debt and is set to close in the Q1 of 2024.
Renesas, at the close of the transaction, will integrate Sequans complete lineup of cellular connectivity products and IP into its core product lineup. That lineup includes microcontrollers, microprocessors, and analog and mixed-signal front ends.
When Renesas adds the Sequans product line to its core products the resulting expansion will immediately result in Renesas entering the Wide Area Network (WAN) market space. Additionally, Renesas’s Personal Area Network (PAN) and Local Area Network (LAN) connectivity products will be significantly enhanced.
Hidetoshi Shibata, President and CEO of Renesas said in a statement, “We are thrilled to take our partnership with Sequans to the next level, 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.”
To find out more about the acquisition of Sequans by Renesas see the announcement here.
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