Semtech Corporation has entered into a definitive agreement to sell its cellular module business to Compal Electronics for $62 million in cash, subject to standard closing adjustments. The deal has been approved by both companies boards of directors.
Under the agreement, Compal will acquire essentially all of the assets and operations that make up Semtech's cellular module business, including the associated intellectual property, customer relationships, and personnel involved.
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Hong Hou, president and CEO of Semtech, said the divestiture sharpens the company's focus on the parts of its portfolio where it has the strongest conviction in future growth and industry leadership, specifically data center networking and LoRa connectivity, a low-power wireless technology used in IoT applications. He described the move as part of a broader discipline the company has been applying across its portfolio, concentrating resources and technical expertise where it believes it can create the most value over time.
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The transaction is expected to close during the fourth quarter of Semtech's 2027 fiscal year, subject to customary closing conditions, including receiving necessary regulatory approvals.
UBS Investment Bank served as financial advisor to Semtech on the deal, with O'Melveny & Myers LLP acting as legal counsel.
