Sequans Communications S.A., a provider of cellular IoT chips and modules, has expanded its 4G/5G licensing agreements with Renesas Electronics Corporation, a supplier of advanced semiconductor solutions, granting special rights to Renesas that strengthen go-to-market opportunities for Sequans’ LTE-M/NB-IoT Monarch 2 and Taurus 5G platforms.
In particular, by building on Renesas’ sales, distribution and customer support capabilities, the deal allows Sequans to expand its serviceable addressable market to India.
Additionally, Renesas will take a small equity stake in Sequans, and Renesas’ Executive Vice President and Head of IoT and Infrastructure business unit, Dr. Sailesh Chittipeddi, will be nominated for election to the Sequans board of directors at the June 2022 shareholder meeting. The combined value of the business agreements and the equity investment, which is expected to close by January 14 – subject to customary closing conditions – is approximately $20 million.
These multi-year agreements are designed to allow Sequans and Renesas to achieve mutually beneficial goals:
- First, the agreements provide better control of manufacturing and product cost, which is especially important given the supply challenges.
- Second, the agreements reinforce the joint product offerings and expand market opportunities.
- Third, the equity stake and board seat facilitate management alignment to strengthen the partnership and make the joint business successful.
For more information, visit www.sequans.com
