Sequans Communications announced that, following the closing of its transaction with Qualcomm Technologies, the company will focus its future investments on addressing the Massive IoT market opportunity with its 4G products and 5G roadmap.
Earlier, the company had announced the successful closing of the sale of Sequans’ 4G IoT technology assets to Qualcomm. Under the terms of the agreement, Sequans retains a perpetual license to continue using, commercializing, and advancing its 4G IoT technology.
The company received $182 million in cash, with $172 million received on September 30 and up to an additional $10 million following the completion of a one-year warranty period. The remaining $18 million, of which $15 million was received under the pre-transaction manufacturing license agreement executed in June 2024 and $3 million was received under a bridge loan in September 2024, has been credited toward the $200 million purchase price.
Sequans reaffirms the decision made in June to focus investments on supporting its 4G LTE-M/NB-IoT and Cat 1bis product line, while developing its product roadmap towards low-power 5G variants for Massive IoT, specifically RedCap and eRedCap, to provide Massive IoT customers with a seamless migration path from 4G to 5G IoT technologies.
Georges Karam, CEO of Sequans, commented, “With a strengthened balance sheet, our proven technology, and a comprehensive portfolio that includes low-power LTE-M/NB-IoT, LTE Cat 1bis, and the forthcoming 5G RedCap and eRedCap technologies, Sequans is now stronger and uniquely positioned to lead the market. Backed by a dedicated team of experts in cellular IoT, we are committed to delivering best-in-class products and services.”
Tom Deitrich, CEO of Itron, which uses Sequans Monarch LTE-M/NB-IoT technology for Grid Edge Intelligence infrastructure and endpoints, commented, “This transaction dramatically strengthens Sequans’ ability to deliver cutting-edge technology at scale, which is crucial for Itron. Sequans is a strategic partner, allowing Itron to increase the value we can create for our customers and all stakeholders.”
Derek Luke, COO of Geotab, which uses Sequans Calliope LTE Cat 1bis technology for connected vehicle and asset solutions, commented, “Sequans has always been a technology leader, especially with the first LTE Cat 1bis technology for North America. Sequans is a trusted partner of Geotab, providing us with exceptional support. They are now set to become an industry leader in IoT.”
Cameron Coursey, Vice President – AT&T Connected Solutions, commented, “We are extremely pleased to see this transaction close. Sequans has been at the forefront of Cat 1bis and LTE-M technology, and we are enthusiastic about their upcoming innovations in 5G IoT with RedCap and eRedCap.”
Dan Shey, Vice President at ABI Research, a global technology market research firm, commented, “This transaction redefines the competitive landscape in cellular IoT technology. The 4G intellectual property developed by Sequans is now poised to become a cornerstone of the mass market IoT industry, utilized by both Qualcomm and Sequans.”
