Sequans Acquires Zurich-based ACP
Sequans Communications (NYSE: SQNS) has acquired ACP Advanced Circuit Pursuit AG, a Zurich-based company specializing in RF CMOS technology. The strategic acquisition aims to strengthen Sequans' technology leadership in 5G eRedCap development and accelerate time-to-market for next-generation IoT chips.
The cash transaction brings in ACP's robust IP portfolio and expertise, along with a small, highly skilled team, while maintaining minimal impact on Sequans' planned operating expenses for 2025. The acquisition is expected to generate modest revenue in 2025, with potential contributions of several million dollars in 2026 through ACP's existing customer relationships.
The merger combines ACP's advanced radio technology with Sequans' cellular IoT leadership, positioning the company to better capture opportunities in the expanding 5G eRedCap market, which is expected to surpass 4G IoT in scale.
Sequans Communications (NYSE: SQNS) ha acquisito ACP Advanced Circuit Pursuit AG, un'azienda con sede a Zurigo specializzata nella tecnologia RF CMOS. Questa acquisizione strategica mira a rafforzare la leadership tecnologica di Sequans nello sviluppo di 5G eRedCap e ad accelerare il time-to-market per i chip IoT di nuova generazione.
L'operazione in contante porta in dote il robusto portafoglio di proprietà intellettuale di ACP e la sua esperienza, insieme a un piccolo team altamente qualificato, mantenendo però un impatto minimo sulle spese operative pianificate di Sequans per il 2025. Si prevede che l'acquisizione generi ricavi modesti nel 2025, con potenziali contributi di diversi milioni di dollari nel 2026 grazie alle relazioni con i clienti esistenti di ACP.
La fusione combina la tecnologia radio avanzata di ACP con la leadership di Sequans nel settore IoT cellulare, posizionando l'azienda per meglio cogliere le opportunità nel mercato in espansione del 5G eRedCap, che si prevede supererà la scala dell'IoT 4G.
Sequans Communications (NYSE: SQNS) ha adquirido ACP Advanced Circuit Pursuit AG, una empresa con sede en Zúrich especializada en tecnología RF CMOS. Esta adquisición estratégica tiene como objetivo fortalecer el liderazgo tecnológico de Sequans en el desarrollo de 5G eRedCap y acelerar el tiempo de comercialización de los chips IoT de nueva generación.
La transacción en efectivo incorpora el sólido portafolio de propiedad intelectual de ACP y su experiencia, junto con un pequeño equipo altamente calificado, manteniendo al mismo tiempo un impacto mínimo en los gastos operativos planificados de Sequans para 2025. Se espera que la adquisición genere ingresos modestos en 2025, con contribuciones potenciales de varios millones de dólares en 2026 a través de las relaciones existentes con los clientes de ACP.
La fusión combina la avanzada tecnología de radio de ACP con el liderazgo de Sequans en IoT celular, posicionando a la empresa para aprovechar mejor las oportunidades en el creciente mercado de 5G eRedCap, que se espera que supere al IoT 4G en escala.
Sequans Communications (NYSE: SQNS)는 RF CMOS 기술을 전문으로 하는 취리히 기반의 ACP Advanced Circuit Pursuit AG를 인수했습니다. 이 전략적 인수는 Sequans의 5G eRedCap 개발에서 기술 리더십을 강화하고 차세대 IoT 칩의 시장 출시에 소요되는 시간을 가속화하는 것을 목표로 합니다.
현금 거래는 ACP의 강력한 지식 재산 포트폴리오와 전문 지식, 그리고 작은 규모의 고도로 숙련된 팀을 인수하는 한편, Sequans가 계획한 2025년 운영 비용에 미치는 영향을 최소화합니다. 이 인수는 2025년에 완만한 수익을 생성할 것으로 예상되며, 2026년에는 ACP의 기존 고객 관계를 통해 수백만 달러의 잠재적 기여를 할 수 있습니다.
이번 합병은 ACP의 첨단 무선 기술과 Sequans의 셀룰러 IoT 리더십을 결합하여, 4G IoT보다 더 큰 규모를 초과할 것으로 예상되는 5G eRedCap 시장에서 기회를 더욱 잘 포착할 수 있도록 회사의 위치를 강화합니다.
Sequans Communications (NYSE: SQNS) a acquis ACP Advanced Circuit Pursuit AG, une entreprise basée à Zurich spécialisée dans la technologie RF CMOS. Cette acquisition stratégique vise à renforcer le leadership technologique de Sequans dans le développement de 5G eRedCap et à accélérer le délai de mise sur le marché des puces IoT de nouvelle génération.
La transaction en espèces apporte le solide portefeuille de propriété intellectuelle d'ACP et son expertise, ainsi qu'une petite équipe hautement qualifiée, tout en maintenant un impact minimal sur les dépenses opérationnelles prévues de Sequans pour 2025. L'acquisition devrait générer des revenus modestes en 2025, avec des contributions potentielles de plusieurs millions de dollars en 2026 grâce aux relations clients existantes d'ACP.
La fusion combine la technologie radio avancée d'ACP avec le leadership de Sequans dans l'IoT cellulaire, positionnant ainsi l'entreprise pour mieux saisir les opportunités sur le marché en expansion du 5G eRedCap, qui devrait dépasser 4G IoT en termes d'échelle.
Sequans Communications (NYSE: SQNS) hat ACP Advanced Circuit Pursuit AG übernommen, ein in Zürich ansässiges Unternehmen, das auf RF CMOS-Technologie spezialisiert ist. Diese strategische Akquisition zielt darauf ab, die technologische Führungsposition von Sequans in der Entwicklung von 5G eRedCap zu stärken und die Markteinführungszeit für die nächste Generation von IoT-Chips zu beschleunigen.
Die Bartransaktion bringt ACPs starkes IP-Portfolio und Fachwissen sowie ein kleines, hochqualifiziertes Team mit sich, während sie gleichzeitig minimale Auswirkungen auf die geplanten Betriebskosten von Sequans für 2025 hat. Die Akquisition soll im Jahr 2025 moderate Einnahmen generieren, mit möglichen Beiträgen von mehreren Millionen Dollar im Jahr 2026 durch die bestehenden Kundenbeziehungen von ACP.
Durch die Fusion werden ACPs fortschrittliche Funktechnologie und Sequans' Führungsposition im Bereich Cellular IoT kombiniert, was das Unternehmen in eine bessere Position versetzt, um die Chancen im wachsenden 5G eRedCap-Markt zu nutzen, der voraussichtlich die Dimensionen von 4G IoT übertreffen wird.
- Strategic acquisition strengthens 5G eRedCap development capabilities
- Minimal impact on 2025 operating expenses
- Expected revenue contribution of several million dollars by 2026
- Acquisition of valuable IP portfolio and RF CMOS technology expertise
- Access to ACP's existing customer relationships
- Only modest revenue expected in 2025
- Cash expenditure for acquisition impacts current financial position
Insights
The acquisition of ACP represents a strategic move in the semiconductor space, particularly for IoT connectivity. ACP's RF CMOS technology expertise and IP portfolio significantly enhance Sequans' capabilities in 5G eRedCap development. Think of this as adding a high-performance engine to an already capable vehicle - it doesn't just add power, it potentially transforms the entire performance profile.
The deal's structure is particularly noteworthy: minimal impact on 2025 operating expenses while promising several million dollars in revenue potential by 2026. This capital-efficient approach demonstrates smart financial engineering, especially important for a company with a market cap of
What makes this acquisition technically significant is ACP's ready-to-use radio technology. In the IoT semiconductor space, time-to-market is often as critical as the technology itself. By acquiring rather than developing these capabilities internally, Sequans could potentially shave off months or even years from their development cycle.
The timing of this acquisition aligns perfectly with market dynamics in the IoT semiconductor space. The 5G eRedCap market represents a massive opportunity, positioned to overtake 4G IoT in scale. For context, imagine 4G IoT as the current highway system, while 5G eRedCap is building a more efficient, expansive network of smart roads.
Looking at the competitive landscape, this acquisition strengthens Sequans' position against larger players in the space. The addition of ACP's existing customer relationships provides immediate market access and revenue potential, which is important for a smaller player in the semiconductor market.
The modest revenue projection for 2025 followed by potentially several million dollars in 2026 suggests a realistic ramp-up period. This conservative approach to financial projections adds credibility to the deal's potential upside, particularly important for a company of Sequans' size where each million in revenue materially impacts the bottom line.
This transaction demonstrates strategic financial planning that balances growth ambitions with fiscal responsibility. The cash transaction structure, while maintaining minimal impact on operating expenses, suggests efficient use of capital resources. For a company with a
The revenue projection timeline is particularly interesting: modest 2025 revenue transitioning to potentially several million dollars in 2026 indicates a well-thought-out integration plan. This gradual scaling allows for proper integration while maintaining financial stability.
The acquisition's focus on 5G eRedCap market opportunity represents a calculated bet on future growth. With the IoT semiconductor market experiencing rapid expansion, this positions Sequans to capture increased market share in a high-growth segment while maintaining operational efficiency.
Strengthens Wireless IP and Expands Business Opportunities
Paris, France--(Newsfile Corp. - January 21, 2025) - Sequans Communications S.A. (NYSE: SQNS), a leading provider of 4G and 5G semiconductors and modules for the Internet of Things, today announced the acquisition of ACP Advanced Circuit Pursuit AG ("ACP"), a Zurich-based company recognized for its robust IP portfolio and expertise in RF CMOS technology.
The acquisition strengthens Sequans' technology leadership in 5G eRedCap development and accelerates its time-to-market for next-generation IoT chips. In addition, ACP's proven radio technology and successful track record in selling its technology across various wireless market segments are expected to create new growth opportunities for Sequans.
"We are thrilled to welcome the ACP team to Sequans," said Georges Karam, Chairman and CEO of Sequans. "Their advanced, ready-to-use technology and engineering expertise perfectly complement our existing capabilities and will be instrumental in driving our product innovations forward."
"Joining Sequans marks a pivotal moment for the ACP team," said Dr. Qiuting Huang, CEO of ACP. "Sequans' pioneering leadership in cellular IoT provides an ideal platform for integrating our technologies and accelerating innovation in the 5G IoT product roadmap."
The acquisition brings a small, highly skilled team to Sequans with minimal impact on the company's planned operating expenses for 2025. The acquisition is expected to generate modest revenue in 2025 and potentially contribute several million dollars in 2026 through ACP's existing customer relationships.
"The 5G eRedCap market is expected to surpass 4G IoT in scale, and this acquisition strengthens Sequans' ability to capture this expanding market opportunity," concluded Karam.
The deal, structured as a cash transaction, underscores Sequans' ability to execute its strategy while maintaining disciplined financial management.
Forward-Looking Statements
This press release contains certain statements that are, or may be deemed to be, forward-looking statements with respect to the financial condition, results of operations and business of Sequans, including the impact of the recently closed ACP acquisition on product innovation, growth prospects and future revenue expectations. These forward-looking statements include, but are not limited to, statements that are not historical fact. These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements also often use words such as "anticipate," "target," "continue," "estimate," "expect," "forecast," "intend," "may," "plan," "goal," "believe," "hope," "aims," "continue," "could," "project," "should," "will" or other words of similar meaning. These statements are based on assumptions and assessments made by Sequans in light of its experience and perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct, and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this announcement.
Forward-looking statements are not guarantees of future performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Such risks and uncertainties include, but are not limited to, potential adverse reactions or changes to business relationships resulting from the completion of the transaction; significant or unexpected costs, charges or expenses resulting from the transaction; and negative effects of the transaction on the market price of Sequans' ADS. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business and competitive environments, market and regulatory forces. If any one or more of these risks or uncertainties materialize or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward-looking statements should therefore be construed in the light of such factors. A more complete description of these and other material risks can be found in Sequans' filings with the SEC, including its annual report on Form 20-F for the year ended December 31, 2023, subsequent filings on Form 6-K and other documents that may be filed from time to time with the SEC. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this announcement. Sequans undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by applicable law.
About Sequans Communications
Sequans Communications S.A. (NYSE: SQNS) is a leading semiconductor company specializing in wireless cellular technology for the Internet of Things (IoT). Our engineers design and develop innovative, secure, and scalable technologies that power the next generation of connected devices. We offer a wide range of solutions, including chips, modules, IP, and services. Our LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap/eRedCap platforms are optimized for IoT, delivering breakthroughs in wireless connectivity, power efficiency, security, and performance. Established in 2003, Sequans is headquartered in France and has a global presence with offices in the United States, United Kingdom, Israel, Hong Kong, Singapore, Finland, Taiwan, and China.
About ACP Advanced Circuit Pursuit
ACP Advanced Circuit Pursuit AG is a leading specialist in integrated circuits for cellular communications. Headquartered in Zürich, Switzerland, ACP offers a comprehensive portfolio of RF transceivers and systems-on-chip (SoCs) for the cellular Internet of Things (IoT) and 5G-enabled enhanced mobile broadband (EMB).
Sequans investor relations: Kim Rogers (USA), +1 385.831.7337, ir@sequans.com
Sequans media relations: Linda Bouvet (France), +33 1 70 72 16 00 media@sequans.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/237926
FAQ
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