American semiconductor manufacturer Semtech (SMTC) is buying Canadian Internet of Things
(IoT) company Sierra Wireless (SW) for $1.2 billion U.S.
Semtech said it will pay $31 U.S. per share for Sierra Wireless, representing a premium of
about 30%.
Semtech said the acquisition will double its annual revenue and add more than $100 million of
cloud services recurring revenue.
Buying Sierra Wireless will also expand Semtech’s IoT serviceable market to $10 billion by
2027, the company said.
The deal is subject to regulatory approval in the U.S. and Canada and is expected to close
sometime next year.
U.S.-listed shares of Sierra Wireless rose 7% in after-hours trading to $30 U.S. after the
acquisition was announced. Year-to-date, Sierra Wireless’ Canadian stock listed in Toronto is
up 65% and trading at $36.24 per share.
Semtech’s stock is down 39% this year and trading at $55.34 U.S. per share.
