Looking to expand its presence in cellular internet of things (IoT) technology, Renesas Electronics plans to acquire Sequans Communications in an all-stock transaction.
Under the deal, Renesas will integrate Sequans’ cellular connectivity products and intellectual property (IP) into its core product lineup. This includes microcontrollers, microprocessors, analog and mixed signal front ends.
Additionally, the acquisition will allow Renesas to expand its reach to the wide area network (WAN) market encompassing a broad range of data rates. The deal will also enhance Renesas’ personal area network and local area network connectivity products.
According to Renesas, the market for cellular IoT technology is growing rapidly. This is due to the demand for smart meters, asset tracking systems, smart homes, smart cities, connected vehicles, fixed wireless access networks and mobile computing devices. Also, the cellular IoT device market is projected to grow by 10% annually.
The move continues Renesas’ expansion of connectivity products through strategic acquisitions. This includes the acquisition of Dialog Semiconductor, the deal for Celeno in 2021 and its acquisition of NFC vendor Panthronics earlier this year.
Prior to the acquisition, Sequans and Renesas have collaborated since 2020 on embedded processors and analog front-end products with Sequans’ wireless chipsets for massive IoT and broadband IoT applications.
