Semtech sells off cellular module business for $62M
Camarillo-based Semtech, a provider of Internet of Things products, announced that it is selling off its cellular module business to Compal Electronics for $62 million in cash, according to an Aug. 13 press release.
Compal Electronics is a major Taiwanese original design manufacturer founded in 1984. The deal is expected to close in the fourth quarter of 2027.
Under the terms of the agreement, Compal will acquire substantially all of the assets and operations comprising Semtech’s cellular module business, including its associated intellectual property, customer relationships, and personnel, according to the press release.
“This divestiture sharpens our focus on the product portfolio where we have the strongest conviction in growth and industry leadership: data center and LoRa connectivity,” said Hong Hou, president and CEO. “It reflects the broader discipline we have been applying across the portfolio, concentrating our resources and our technology leadership where we believe we can create the most value over time.”
UBS Investment Bank served as financial advisor and O’Melveny & Myers LLP served as legal counsel in connection with the transaction.
