Renesas looks to buy 5G IoT chip company

Author: EIS Release Date: Aug 15, 2023

Renesas Electronics has signed a memorandum of understanding to acquire Sequans Communications, a developer and supplier of 5G and 4G IoT chips and modules.

 

Sequans GM02S-Monarch module

“Renesas will, following consultation of the Sequans’ works council and favourable recommendation by the Sequans Board, commence a tender offer to acquire all outstanding ordinary shares, including American depositary shares [ADS] of Sequans for $3.03 per ADS – each ADS representing four ordinary shares – in cash,” said Renesas. “The transaction values Sequans at approximately $249m, including net debt, and 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.”

 

The acquisition will add wide-area network products to its personal area network and local area network portfolios.

 

 

“The market for cellular IoT technology is growing, fuelled by demand for smart meters, asset tracking, smart homes, smart cities, connected vehicles, fixed wireless access networks and mobile computing devices,” said Renesas.

 

 

Renesas has been purchasing communications companies, including Dialog, Celeno and most recently Panthronics. It has been collaborating with Sequans since 2020 with a joint processor, analogue front-end and wireless chipsets offer.

 

Founded in 2003, Sequans is a fabless semiconductor company with R&D in Israel, France and Finland. Its products cover 5G and 4G cellular categories including 5G NR, Cat 4, Cat 1 and LTE-M/NB-IoT, and meed radio frequency regulations in North America, Asia-Pacific and Europe.

 

Photo: Sequans Monarch 2 LTE-M/NB-IoT module.