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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 LOGIN in 2024, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (14.8x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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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.

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Historical Financials (USD)

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REFERENCES

Valuation range: EV 100M - 350M USD

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Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Press release: view release

Target: sequans communications

Acquirer: qualcomm