Semtech estimates that by 2027 the IoT market will have grown ten-fold, resulting in a 10 billion dollar boom.
Semtech Corporation, according to a statement in a press release, purchased Sierra Wireless for $1.25 billion. This acquisition increased its revenue from IoT Cloud Services with high margins by $100 million. Semtech expects the acquisition to “immediately increase non-GAAP earnings per share” and generate “run-rate operational synergies of $40 million in 18 months”.
According to Semtech CEO Mohan Maheswaran the combined business will have considerable expertise in connectivity whether it is high bandwidth cellular, or ultra-low powered LoR. They gain expertise in IoT services and software, a deep understanding of IoT Hardware, and the underappreciated but priceless ability to negotiate global sales channels and Vertical markets. Maheswaran believes that Semtech has a unique opportunity to offer customers in high-growth IoT categories an extensive product portfolio and a service strategy.
Maheswaran said that Sierra Wireless offers a broad and robust portfolio of IoT device-to Cloud solutions. The company has also been a leader of cellular IoT for 30 years. Semtech’s LoRa capable end nodes put us in an excellent position to provide a service which is both comprehensive and distinctive. Service providers need to be able to manage their systems in a comprehensive manner.
Semtech’s leadership team now includes two newly-formed business areas led by former Sierra Wireless senior executives. Tom Mueller has been appointed executive vice president of the IoT System Products Group. This group already includes Semtech’s LoRa products. Ross Gray is now the vice president of IoT Connected Services. Pravin Desale, Semtech’s senior vice president for IoT Engineering is responsible for product development and innovative solutions.
