Qualcomm and Sequans have reached an agreement for Qualcomm to acquire Sequans’ 4G IoT technologies, including certain employees, assets, and licenses. This acquisition aims to strengthen Qualcomm’s Industrial IoT portfolio and accelerate its leadership in digital transformation at the edge. Sequans will retain a license for the 4G IoT technology and continue serving its IoT markets with an improved balance sheet.
The transaction, subject to French regulatory approval, will enhance Qualcomm’s offerings of low-power solutions for reliable, optimized cellular connectivity in IoT applications. Sequans maintains full ownership of its 5G technology and will use the capital from this deal to further invest in its IoT business ambitions, including the development of its 5G portfolio.
Qualcomm e Sequans hanno raggiunto un accordo per l’acquisizione da parte di Qualcomm delle tecnologie 4G IoT di Sequans, inclusi alcuni dipendenti, beni e licenze. Questa acquisizione mira a rafforzare il portfolio IoT industriale di Qualcomm e accelerare la sua leadership nella trasformazione digitale al margine. Sequans manterrà una licenza per la tecnologia IoT 4G e continuerà a servire i suoi mercati IoT con un bilancio migliorato.
La transazione, soggetta all’approvazione normativa francese, migliorerà le offerte di Qualcomm di soluzioni a bassa potenza per una connettività cellulare affidabile e ottimizzata nelle applicazioni IoT. Sequans conserva la piena proprietà della sua tecnologia 5G e utilizzerà il capitale di questo accordo per investire ulteriormente nelle sue ambizioni nel settore IoT, inclusa lo sviluppo del suo portfolio 5G.
Qualcomm y Sequans han llegado a un acuerdo para que Qualcomm adquiera las tecnologías IoT 4G de Sequans, incluidos ciertos empleados, activos y licencias. Esta adquisición tiene como objetivo fortalecer el portafolio IoT industrial de Qualcomm y acelerar su liderazgo en la transformación digital en los bordes. Sequans retendrá una licencia para la tecnología IoT 4G y continuará atendiendo sus mercados IoT con un balance mejorado.
La transacción, sujeta a la aprobación regulatoria francesa, mejorará la oferta de Qualcomm de soluciones de bajo consumo para una conectividad celular confiable y optimizada en aplicaciones IoT. Sequans mantiene la plena propiedad de su tecnología 5G y utilizará el capital de este acuerdo para invertir aún más en sus ambiciones comerciales de IoT, incluyendo el desarrollo de su cartera de 5G.
퀄컴과 Sequans는 퀄컴이 Sequans의 4G IoT 기술을 인수하기로 합의했습니다. 여기에는 특정 직원, 자산 및 라이선스가 포함됩니다. 이번 인수는 퀄컴의 산업 IoT 포트폴리오를 강화하고 엣지에서의 디지털 혁신을 가속화하는 것을 목표로 합니다. Sequans는 4G IoT 기술에 대한 라이선스를 유지하고, 개선된 재무 상태로 IoT 시장을 계속하여 제공할 것입니다.
이번 거래는 프랑스 규제 당국의 승인을 받는 조건으로, 퀄컴의 IoT 애플리케이션을 위한 신뢰할 수 있고 최적화된 셀룰러 연결성을 제공하는 저전력 솔루션을 향상시킬 것입니다. Sequans는 5G 기술에 대한 완전한 소유권을 유지하며, 이번 거래로 얻은 자본을 IoT 사업 목표를 더욱 발전시키고, 5G 포트폴리오 개발에 활용할 것입니다.
Qualcomm et Sequans ont conclu un accord pour que Qualcomm acquière les technologies IoT 4G de Sequans, y compris certains employés, actifs et licences. Cette acquisition vise à renforcer le portefeuille IoT industriel de Qualcomm et à accélérer sa position de leader dans la transformation numérique en périphérie. Sequans conservera une licence pour la technologie IoT 4G et continuera à servir ses marchés IoT avec un bilan amélioré.
La transaction, soumise à l’approbation des régulateurs français, améliorera les offres de Qualcomm en matière de solutions à faible consommation pour une connectivité cellulaire fiable et optimisée dans les applications IoT. Sequans conserve la pleine propriété de sa technologie 5G et utilisera le capital de cet accord pour investir davantage dans ses ambitions commerciales IoT, y compris le développement de son portefeuille 5G.
Qualcomm und Sequans haben eine Vereinbarung getroffen, dass Qualcomm die 4G IoT-Technologien von Sequans einschließlich bestimmter Mitarbeiter, Vermögenswerte und Lizenzen erwerben wird. Diese Akquisition zielt darauf ab, das Industrial IoT-Portfolio von Qualcomm zu stärken und die Führungsposition in der digitalen Transformation an der Edge zu beschleunigen. Sequans wird eine Lizenz für die 4G IoT-Technologie behalten und weiterhin seine IoT-Märkte mit einer verbesserten Bilanz bedienen.
Die Transaktion, die der Genehmigung durch die französischen Aufsichtsbehörden unterliegt, wird das Angebot von Qualcomm an energiewirtschaftliche Lösungen für zuverlässige, optimierte Mobilfunkkonnektivität in IoT-Anwendungen verbessern. Sequans behält das volle Eigentum an seiner 5G-Technologie und wird das Kapital aus diesem Deal nutzen, um weiter in seine IoT-Geschäftsziele zu investieren, einschließlich der Entwicklung seines 5G-Portfolios.
Positive
Strengthens Qualcomm’s Industrial IoT portfolio with low-power 4G IoT solutions
Expands Qualcomm’s leadership in digital transformation at the edge
Sequans retains license for 4G IoT technology, allowing continued market service
Sequans gains significant capital to invest in IoT business and 5G portfolio development
Sequans maintains full ownership of its 5G technology
Negative
Transaction subject to French regulatory approval, which may delay or prevent completion
This acquisition significantly bolsters Qualcomm’s position in the Industrial IoT market. By integrating Sequans’ 4G IoT technology, Qualcomm is poised to offer more comprehensive, low-power solutions for edge computing and digital transformation. This move aligns with the growing trend of AI-powered IoT applications, which require optimized cellular connectivity.
The deal is strategically sound for both parties. Qualcomm gains a competitive edge in the rapidly expanding Industrial IoT sector, while Sequans receives a capital injection to fuel its 4G business expansion and 5G portfolio development. The retention of licensing rights by Sequans ensures continued revenue streams from its 4G technology, creating a win-win situation.
For investors, this acquisition signals Qualcomm’s commitment to diversifying beyond its core mobile chip business, potentially opening up new revenue streams in the lucrative IoT market. However, the success of this strategy will depend on Qualcomm’s ability to effectively integrate and monetize Sequans’ technology.
This acquisition is a strategic move for Qualcomm, potentially enhancing its revenue streams in the growing IoT sector. While the financial terms weren’t disclosed, the deal’s structure appears favorable for both companies. Qualcomm gains valuable 4G IoT technology without the burden of a full company acquisition, while Sequans receives a capital infusion to strengthen its balance sheet and fund future growth initiatives.
For Sequans, retaining a perpetual license for the sold technology is crucial, as it allows the company to continue serving its existing markets while developing its 5G portfolio. This deal structure mitigates potential risks associated with selling core technology.
Investors should note that this transaction could accelerate Qualcomm’s growth in the Industrial IoT space, potentially leading to increased market share and revenues. For Sequans, the improved balance sheet and focused strategy on 5G development could enhance its long-term prospects, making it an interesting stock to watch in the semiconductor sector.
This acquisition marks a significant shift in the IoT landscape. Qualcomm’s move to strengthen its Industrial IoT portfolio with Sequans’ 4G technology addresses the growing demand for low-power, reliable cellular connectivity in IoT applications. This is particularly important as industries increasingly adopt AI-powered IoT solutions at the edge.
The deal positions Qualcomm to better compete in the Industrial IoT market, which is projected to see substantial growth in the coming years. By offering end-to-end solutions, Qualcomm can now cater to a wider range of enterprise customers looking to digitally transform their operations.
For the broader IoT ecosystem, this acquisition could accelerate the development and deployment of more sophisticated IoT applications, particularly in industrial settings. It also highlights the increasing convergence of 4G/5G technologies, AI and edge computing in driving the next wave of IoT innovation. Investors should closely monitor how this acquisition impacts Qualcomm’s market share and revenue growth in the Industrial IoT sector over the next 12-24 months.
08/23/2024 – 06:00 AM
Strengthens Qualcomm’s Industrial IoT portfolio, offering low-power solutions for reliable, optimized cellular connectivity for IoT applications
Expands and accelerates Qualcomm’s leadership position in digital transformation at the edge
Sequans retains license of the 4G IoT Technology for its ongoing use and will continue to serve its IoT markets with a strengthened balance sheet
Sequans maintains full ownership of its 5G technology
Paris, France and San Diego, California–(Newsfile Corp. – August 23, 2024) – Qualcomm Incorporated, (NASDAQ: QCOM), a global leader in high-performance at low-power solutions, through its subsidiary, Qualcomm Technologies, Inc. (“Qualcomm”), and Sequans Communications S.A. (NYSE: SQNS), a supplier of 4G and 5G semiconductor solutions for the Internet of Things (IoT), today announced that they have entered into a definitive agreement for Qualcomm to buy Sequans’ 4G IoT technologies. The acquisition includes certain employees, assets and licenses. The transaction is subject to customary closing conditions, including French regulatory approval.
Qualcomm is revolutionizing industries, redefining business models, and enhancing user experiences through its cutting-edge IoT solutions. Qualcomm® IoT technologies and solutions utilize the real-world connected intelligent edge to offer end-to-end, ready-to-deploy solutions so customers can digitally transform their businesses to optimize their operations, monetize massive amounts of data, innovate in new ways, and drive cost savings.
Sequans is a designer, developer, and supplier of cellular semiconductor solutions for massive and critical IoT markets. The addition of Sequans’ 4G IoT technologies to Qualcomm’s advanced end-to-end IoT solutions will strengthen Qualcomm’s Industrial IoT portfolio and provides a unique opportunity to build a leadership position in this space.
“Digital transformation is being driven by high-performance processing and intelligence at the edge, positioning Qualcomm for growth in one of the largest addressable opportunities,” said Nakul Duggal, group general manager, automotive, industrial and embedded IoT, and cloud computing, Qualcomm Technologies, Inc. “This acquisition of Sequans’ 4G IoT technology adds to Qualcomm’s broad portfolio, further strengthening our offerings across enterprise customers of low-power solutions for reliable, optimized cellular connectivity for Industrial IoT applications.”
Sequans will retain full rights to continue to use the technology commercially, via a perpetual license agreement, supporting the company’s ability to expand its 4G business and develop its 5G portfolio.
“We are excited to announce this important transaction with Qualcomm. This agreement underscores the value of our 4G IoT technology and provides us with significant capital to continue to further invest in our IoT business ambitions,” said Georges Karam, CEO of Sequans. “We are dedicated to pushing the boundaries of innovation and providing cutting-edge 4G/5G semiconductor solutions that meet the advancing needs of AI-powered Internet of Things applications. This transaction is expected to provide us the resources and flexibility to enhance our product offerings and expand our market presence.”
About Qualcomm
Qualcomm relentlessly innovates to deliver intelligent computing everywhere, helping the world tackle some of its most important challenges. Our proven solutions drive transformation across major industries, and our Snapdragon® branded platforms power extraordinary consumer experiences. Building on our nearly 40-year leadership in setting industry standards and creating era-defining technology breakthroughs, we deliver leading edge AI, high-performance, low-power computing, and unrivaled connectivity. Together with our ecosystem partners, we enable next-generation digital transformation to enrich lives, improve businesses, and advance societies. At Qualcomm, we are engineering human progress.
Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of our engineering and research and development functions and substantially all of our products and services businesses, including our QCT semiconductor business. Snapdragon and Qualcomm branded products are products of Qualcomm Technologies, Inc. and/or its subsidiaries. Qualcomm patented technologies are licensed by Qualcomm Incorporated.
About Sequans
Sequans Communications S.A. (NYSE: SQNS) is a leading semiconductor company specialized in wireless cellular technology for the Internet of Things (IoT). Our engineers design and develop innovative, secure, and scalable technologies that power the next generation of connected devices. We offer a wide range of solutions, including chips, modules, IP and services. Our Monarch ® (NB-IoT/LTE-M), Calliope (LTE Cat-1/Cat-1bis), and Taurus (5G NR) platforms are optimized for IoT, delivering breakthroughs in wireless connectivity, power efficiency, security, and performance.
Established in 2003, Sequans is headquartered in France and has a global presence with offices in the United States, United Kingdom, Israel, Hong Kong, Singapore, Finland, Taiwan, and China.
Forward Looking Statements
This press release contains certain statements that are, or may be deemed to be, forward-looking statements with respect to the financial condition, results of operations and/or business of Sequans and Qualcomm following completion of the transaction. These forward-looking statements include, but are not limited to, statements regarding the satisfaction of conditions to the completion of the proposed transaction and the expected completion of the proposed transaction, the timing and benefits thereof, as well as other statements that are not historical fact. These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements also often use words such as “anticipate,” “target,” “continue,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “goal,” “believe,” “hope,” “aims,” “continue,” “could,” “project,” “should,” “will” or other words of similar meaning. These statements are based on assumptions and assessments made by Sequans or Qualcomm, as applicable, in light of its experience and perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this announcement.
Forward-looking statements are not guarantees of future performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Such risks and uncertainties include, but are not limited to, the potential failure to satisfy conditions to the completion of the proposed transaction due to the failure to obtain necessary regulatory or other approvals; the outcome of legal proceedings that may be instituted against Sequans and/or others relating to the transaction; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction; significant or unexpected costs, charges or expenses resulting from the proposed transaction; and negative effects of this announcement or the consummation of the proposed transaction on the market price of Sequans’ ADS and ordinary shares. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business and competitive environments, market and regulatory forces. If any one or more of these risks or uncertainties materializes or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward looking statements should therefore be construed in the light of such factors. A more complete description of these and other material risks can be found in Sequans’ filings with the United States Securities and Exchange Commission (SEC), including its annual report on Form 20-F for the year ended December 31, 2023, subsequent filings on Form 6-K and other documents that may be filed from time to time with the SEC, and in Qualcomm’s filings with the SEC, including its most recent Annual Report on Form 10-K and subsequent periodic reports on Form 10-Q and Form 8-K. Sequans’ and Qualcomm’s respective filings with the SEC are available at the SEC’s website at www.sec.gov. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this announcement. Neither Sequans nor Qualcomm undertakes any obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by applicable law.
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FAQ
What is the purpose of Qualcomm’s acquisition of Sequans’ 4G IoT technology?
Qualcomm’s acquisition of Sequans’ 4G IoT technology aims to strengthen its Industrial IoT portfolio and accelerate its leadership in digital transformation at the edge, offering low-power solutions for reliable, optimized cellular connectivity in IoT applications.
Will Sequans (SQNS) continue to use the 4G IoT technology after the sale to Qualcomm?
Yes, Sequans (SQNS) will retain a perpetual license to continue using the 4G IoT technology commercially, supporting its ability to expand its 4G business and develop its 5G portfolio.
How will the sale of 4G IoT technology affect Sequans’ (SQNS) financial position?
The sale is expected to provide Sequans (SQNS) with significant capital to further invest in its IoT business ambitions and enhance its product offerings, potentially improving its financial position and market presence.
What regulatory approvals are required for the Qualcomm-Sequans (SQNS) transaction?
The transaction is subject to French regulatory approval, as stated in the press release.
