By 2027, Semtech projects that their IoT market would have multiplied ten times into a ten billion dollar bonanza.
According to a press statement, Semtech Corporation purchased Sierra Wireless for $1.2 billion, boosting its revenue from high-margin IoT Cloud services by $100 million. Semtech anticipates that the acquisition will “immediately accretive to non-GAAP EPS” and “run rate operational synergies” of $40 million within 18 months.
As per Semtech CEO Mohan Maheswaran, the united business will have considerable competence in connectivity, whether it be high bandwidth cellular or ultra-low power LoR. As a result, they gain proficiency in IoT software and services, in-depth understanding of IoT hardware, and the priceless but underappreciated ability to negotiate the global sales channels and vertical markets. We think Semtech is in a unique position to provide customers across high growth IoT categories a robust product portfolio and service strategy, according to Maheswaran.
According to Maheswaran, Sierra Wireless has a robust and broad portfolio of device-to-Cloud IoT solutions and has 30 years of experience as a leader in cellular IoT. The combination of Semtech’s LoRa-capable end nodes puts us in a great position to offer a service that is both distinctive and comprehensive. Before they can make the world a more intelligent and sustainable planet, service providers must give comprehensive and yet thorough management.
Two newly formed business areas, led by former senior executives of Sierra Wireless, are now part of the Semtech leadership team. The IoT System Products Group, which already comprises Semtech’s LoRa product line, welcomes Tom Mueller as executive vice president. Ross Gray has been hired as the group’s vice president for IoT Connected Services. As the senior vice president of IoT Engineering, Pravin Desale joins Semtech and is responsible for the product development of our innovative systems and solutions.