mynth
← DATABASE
09/2024

SEQUANS COMMUNICATIONS acquired by QUALCOMM

FRANCE Hardware & Electronics / Electronic Components / Semiconductors EV 100M - 350M USD

Context

Qualcomm has completed the acquisition of Sequans Communications' 4G IoT technology business, which encompasses a range of technological assets, intellectual property, licenses, and associated human resources related to cellular connectivity technologies. The acquired technologies include LTE-M, NB-IoT, and LTE Cat 1bis solutions, widely used in IoT applications that require low-power consumption and extended network coverage. By integrating these technologies, Qualcomm strengthens its portfolio of connectivity solutions for industrial and embedded markets. The transaction also includes a licensing framework that allows Sequans to continue commercializing its technologies while retaining ownership of its 5G-related developments, which will now be the focus of the company's research and development strategy. For Qualcomm, this acquisition is part of a broader strategy to enhance its IoT solution offerings and consolidate its technological capabilities in edge computing and industrial connectivity.

SEQUANS COMMUNICATIONS, which reported an EBITDA margin of in 2024, is valued in this transaction at an EV/EBITDA multiple of , a level to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (15.1x).

-> Deep-dive in TMT (Tech, Media, Telecom) market trends

Target

Sequans Communications is a French semiconductor company that specializes in cellular connectivity technologies for the Internet of Things (IoT). The company designs chips, modules, and software solutions that enable connected devices to communicate via mobile networks. Its focus is on low-power wide-area (LPWA) communications, which cater to equipment that requires reliable, durable, and energy-optimized connectivity. Sequans' activities revolve around solutions for industrial applications and connected infrastructure, particularly in the areas of smart metering, asset tracking, industrial IoT devices, and sensor networks. The company develops technologies that are compatible with cellular standards dedicated to IoT, allowing for the connection of a large volume of devices with stringent cost and power constraints. Sequans has recognized expertise in LTE architecture for IoT and supports an international ecosystem comprising telecom operators, equipment manufacturers, and industrial players. In parallel, the company is investing in next-generation technologies related to 5G to support the evolution of IoT use cases towards more complex and high-performance applications.

Ent. Value

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (USD)

Year
Rev
EBITDA
EBIT
2024
2023

Similar deals in Hardware & Electronics

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
12/2024TAGMASTERQUERCUS TECHNOLOGIESSPAINIoT & Connected Objects
10/2024AMETEKVIRTEK VISIONCANADASensors & Optics
09/2024BALMORAL FUNDSXIRGO TECHNOLOGIESUNITED STATESSensors & Optics
09/2024SomacisAT&S KoreaKOREA, SOUTHElectronic Components
08/2024BAIN CAPITALSomacisITALYElectronic Components
07/2024SomacisDYCONEXSWITZERLANDSemiconductors
06/2024RESIDEO TECHNOLOGIESSNAP ONEUNITED STATESIoT & Connected Objects
06/2024CAPITAL CROISSANCESTIDFRANCEIoT & Connected Objects
02/2024TELEDYNE TECHNOLOGIES INCORPORATEDADIMECNETHERLANDSSensors & Optics
12/2023ORICATERRA INSIGHTSCANADASensors & Optics

REFERENCES

Valuation range: EV 100M - 350M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of SEQUANS COMMUNICATIONS by QUALCOMM are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Target: sequans communications

Acquirer: qualcomm