Semtech in talks to buy Sierra Wireless for $1.2B
The Camarillo-based semiconductor company Semtech Corp. disclosed Aug. 2 that it “has engaged in advanced discussions” regarding a possible $1.2 billion acquisition of Sierra Wireless, a Canadian company that makes components for the Internet of Things applications that Semtech also specializes in.
Bloomberg first reported a potential deal on Aug. 1, and that day shares of Sierra shot up 19.4% to close at $29.70, just short of the $31 per share cited in Semtech’s statement the following day.
That statement said only that Semtech has been in talks with Sierra at a price of $31 per share, and that Semtech will not make any further announcements unless it enters into a binding agreement to buy Sierra.
Sierra, which is based in Vancouver, Canada, closed at $28.15 on Aug. 2, giving it a market capitalization of about $1.08 billion. At $31 per share, the company would be worth around $1.18 billion.
Semtech shares dropped when news of a potential acquisition spread, losing 6.2% on Aug. 1 and another 5.4% the next day, to close at $55.34 on Aug. 2. Semtech’s market capitalization is $3.5 billion, making it the eight largest publicly traded company based in the Tri-Counties.