Semtech recently acquired Sierra Wireless. That’s a pretty big acquisition. To understand why it is was done and what it means to an embedded developer, I spoke to Pravin Desale, the Senior Vice President of IoT Engineering at Semtech on this week’s Embedded Executives podcast.

In the wake of Semtech Corporation's acquisition of Sierra Wireless, the company unveiled a refreshed brand reflecting its revitalized focus on sustainable IoT solutions. With the acquisition, Semtech's Cloud-to-chip portfolio has expanded to include products and services like semiconductors, software, cellular modules and routers, and connected services for digital transformation.

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CAMARILLO, CALIFORNIA, and VANCOUVER, BRITISH COLUMBIA. Semtech's all-cash transaction amounts to a total enterprise value of around US$1.2 billion, almost doubling Semtech’s yearly revenue and adding about US$100 million of recurring revenue in high-margin IoT Cloud services. Semtech expects the acquisition to be immediately accretive to non-GAAP EPS and to generate US$40 million of run rate operational synergies within a year and a half.

Semtech Corporation, a global supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms, and Sierra Wireless, Inc., an Internet of Things (IoT) solutions provider, announced a definitive agreement under which Semtech will acquire all outstanding shares of Sierra Wireless for US$31 per share in an all-cash transaction representing a total enterprise value of approximately US$1.2 billion, subject to customary closing conditions.

Individually, the various components that make up an IoT system are well understood:

• A sensor that captures data
• A serial bus that communicates data to an edge processor
• An edge processor that writes data to memory
• A wireless link like cellular that transmits data to a local or remote cloud
• A web dashboard that allows users to observe data as information and do something with it

Sierra Wireless’ IoT background is helping enable Mobile Viewpoint to bring their next-generation 5G mobile video encoder to market.