Semtech (NASDAQ:SMTC) has wrapped up its acquisition of Sierra Wireless (NASDAQ:SWIR), a deal valued at an enterprise value of $1.2B.
The all-cash $31-per-share deal nearly doubles Semtech’s annual revenues and the company notes it brings about $100M in high-margin Internet of Things cloud services recurring revenues.
“Sierra Wireless (SWIR) brings nearly 30 years of leadership in cellular IoT and a strong and diverse device-to-Cloud IoT solutions portfolio,” said Semtech President/CEO Mohan Maheswaran. 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.”
Senior leaders at Sierra Wireless are taking responsibilities on at Semtech: Tom Mueller will join as executive VP of the newly formed IoT System Products Group (incorporating Semtech’s existing LoRa products); Ross Gray joins as VP of the new IoT Connected Services Group; and Pravin Desale joins as senior VP of IoT Engineering.
Semtech (SMTC) expects the deal to be immediately accretive to its non-GAAP earnings per share , and to generate some $40M in run-rate operational synergies within 12-18 months post-closing.
Semtech confirmed last August that it had a cash deal to acquire Sierra Wireless, what at the time represented about a 25% price premium.