A future cloud services portfolio offering that will enhance security, provisioning, device management and geolocation capabilities for power-optimized IoT applications is on track to becoming a reality.
Semtech, a semiconductor supplier, and Sierra Wireless announced an agreement under which Semtech is acquiring Sierra Wireless (News - Alert). The deal is expected to close in Semtech’s fiscal year 2023.
Sierra Wireless has 25 years of cellular IoT expertise that has seen 2G to 5G cellular module and routers shipped to more than 200 countries. It has a portfolio of simplified and reliable connectivity solutions, including global SIMs and regional connectivity solutions for LPWA, 4G LTE (News - Alert) and 5G IoT deployments.
Sierra Wireless also has a broad portfolio of secure, high-performance embedded IoT modules and solutions that deliver capabilities to the cloud through 4G, 5G and LPWA cellular networks.
With the acquisition, Semtech will combine Sierra Wireless’ cellular capabilities across its modules, gateways and managed connectivity with Semtech’s LoRa-enabled end nodes to create an IoT portfolio that will create new IoT use cases.
Worldwide, companies are adopting cellular and LoRa connectivity solutions to connect low power sensor networks to the cloud. Doing this will improve operational efficiencies, reduce wastes, manage natural resources and enable numerous other smarter planet objectives.
“Our vision is to build a simple, horizontal platform with the goal of accelerating this transformation and to bring about a smarter and more sustainable planet,” said Semtech president and chief executive officer, Mohan Maheswaran. “This exciting strategic acquisition of Sierra Wireless is a critical part of bringing this vision to life through the combination of cellular, LoRa and cloud services.”
Sierra Wireless has demonstrated expertise in IoT and cellular engineering, software and services, and its extensive knowledge of IoT channels and vertical markets. Semtech is expecting the combined company to be positioned to serve high growth segments such as:
“Sierra Wireless has taken steps to profitably grow the business,” said Phil Brace, president and chief executive officer of Sierra Wireless. “Together with Semtech, we will be able to extend the reach of IoT solutions by scaling, optimizing and ultimately delivering an even stronger product portfolio and service model to customers.”
The acquisition will expand Semtech’s addressable market and is expected to nearly double Semtech’s annual revenue and create a strong and diverse portfolio of connectivity solutions for the growing IoT market.