Semtech the Californian LoRa specialist, is reported by Bloomberg to be at a late stage in negotiations to buy Sierra Wireless, the Canadian IoT specialist.
With LoRa becoming the accepted wireless technology for long range networking – up to 3 miles in urban areas and 10 in rural areas – there is logic in combining the two companies.
Semtech has been focussed on extending the application of LoRAWAN . Earlier this year, the company hooked up with Lacuna Space to extend the coverage of LoRaWAN by adding IoT-to-Satellite connectivity using Long Range Frequency Hopping Spread Spectrum (LR-FHSS) technology.
Sierra has a 3.3% share of the cellular module market but it is up against Quectel which has a 39.3% share, Sunsea which has a 13.4% share and Telit Cinterion with a 5.8% share.
Semtech has a market cap of $3.64 billion and Sierra has a market cap of $1.1 billion. Sierra’s share price spiked up from $24 to $30 when the report of the potential deal was first published.