Qualcomm announced that it had completed its $200 million acquisition of 4G IoT technology assets from French firm Sequans Communications S.A., a deal that was announced last month as Qualcomm’s latest step in advancing the company’s ongoing diversification into IoT.
Shortly after the initial announcement of the sale, Counterpoint Research noted that the acquisition likely will not enhance Qualcomm’s market share in the non-automotive 4G IoT segment, where it already has a 23% share compared to Sequan’s market share of less than 1%. But, the technology it has acquired–particularly Sequan’s Monarch chips–should bring new value to its portfolio.
“Released in 2018, Qualcomm’s MDM9206 and MDM9205 LPWA Dual Mode chipsets are now considered outdated,” Counterpoint wrote in its analysis of the deal. “Sequans’ Monarch series is the latest and offers improved performance, lesser power consumption and smaller size compared to Qualcomm’s chips. Acquiring Sequans technology is a smart move that will help Qualcomm strengthen its position and effectively address this gap in the LPWA market.”
Qualcomm has been growing its IoT business for several years as part of a stated broader effort to diversify from its core mobile handset business. In its fiscal third quarter 2024 earnings announced in July, the company said it brought in $1.4 billion in revenue from IoT during the quarter, a figure down slightly from the same quarter a year earlier. During the Q3 earnings presentation, Qualcomm said that it would reveal a “new dedicated product roadmap for industrial IoT” in the coming months. It already has scheduled its 2024 Investor Day event for Nov. 19, which will include an update on Qualcomm’s automotive and IoT diversification strategy. That event will come just after Qualcomm’s fiscal fourth quarter earnings report, currently scheduled for Nov. 6
Nakul Duggal, group general manager, automotive, industrial and embedded IoT, and cloud computing, Qualcomm Technologies, Inc., stated upon the closing of the acquisition, "We are pleased to add Sequans' 4G IoT technology into Qualcomm’s broad product portfolio, adding to our robust, low-power solutions for dependable and optimized cellular connectivity for industrial IoT applications. This acquisition supports our commitment to delivering cutting-edge IoT solutions and strengthens our position as a leader in intelligence at the edge."
Sequans CEO Georges Karam added, “We are thrilled to finalize this transaction with Qualcomm and to retain a perpetual license to continue using, commercializing and advancing these technologies. It validates the strength of our technology and ensures that our customers will continue to receive top-tier support on our 4G portfolio and cutting-edge 5G innovation from Sequans. The asset sale is set to deliver significant benefits to our customers. With a robust balance sheet, proven technology and a comprehensive portfolio that includes low-power LTE-M/NB-IoT, LTE Cat 1bis and the upcoming 5G Redcap/eRedCap technology, Sequans is very well positioned in the market. Supported by a seasoned team dedicated to cellular IoT, Sequans is set to provide best-in-class IoT products and services.”