In a move that will expand its high-margin internet of things (IoT) cloud services and wireless networking, Semtech Corp. has completed its $1.2 billion acquisition of Sierra Wireless.
The transaction will nearly double Semtech’s revenue and adds about $100 million in IoT cloud services of recurring revenues.
The combined company will have a strong portfolio in high bandwidth cellular connectivity, ultra-low power LoRa connectivity, IoT software and services and knowledge of IoT hardware and software channels and vertical markets.
“Sierra Wireless brings nearly 30 years of leadership in cellular IoT and a strong and diverse device-to-Cloud IoT solutions portfolio,” said Mohan Maheswaran, president and CEO of Semtech. “Combined with Semtech’s LoRa-enabled end nodes, we believe we are very well positioned to deliver a highly differentiated, end-to-end platform to enable the transformation to a smarter, more sustainable planet.”
Former Sierra Wireless executives will join the Semtech team in two newly formed business groups including the IoT Systems Products Group and the IoT Connected Services Group.
