PARIS, Jan. 5, 2022 /PRNewswire/ -- Sequans
Communications S.A. (NYSE: SQNS), a leading provider of cellular
IoT chips and modules, announced today an expansion of its existing
4G/5G licensing agreements with Renesas Electronics Corporation
(TSE:6723, "Renesas"), a premier supplier of advanced semiconductor
solutions, granting special rights to Renesas that strengthen the
go-to-market opportunities for Sequans' LTE-M/NB-IoT Monarch 2 and
Taurus 5G platforms. In particular, by building on Renesas'
extensive sales, distribution and customer support capabilities,
the deal allows Sequans to expand its serviceable addressable
market to India.
Additionally, Renesas will take a small equity stake in
Sequans, and Renesas' Executive Vice President and Head of IoT and
Infrastructure business unit, Dr. Sailesh
Chittipeddi, will be nominated for election to the Sequans
board of directors at the June 2022
shareholder meeting. The combined value of the business agreements
and the equity investment, which is expected to close by
January 14, 2022 subject to customary
closing conditions, is approximately $20
million.
These multi-year agreements are designed to allow Sequans and
Renesas to achieve several mutually beneficial goals. First, the
agreements provide better control of manufacturing and product
cost, which is especially important given the current supply
challenges. Second, the agreements reinforce the joint product
offerings and expand market opportunities. Third, the equity stake
and board seat facilitate management alignment to strengthen the
partnership and make the joint business successful.
"We are pleased to further strengthen our relationship with
Renesas with both the LTE-M/NB-IoT and 5G businesses, as well as
the opportunity to add Dr. Chittipeddi to the Sequans board," said
Georges Karam, CEO of Sequans. "The
expanded agreements reinforce our sales strategy and provide access
to numerous new opportunities with a unique competitive solution
while allowing us to leverage Renesas' strong global brand and
manufacturing advantages."
"Renesas values Sequans' comprehensive cellular IoT offering,
which brings our global customers and us advanced 4G/5G IoT
capabilities that can address the broadest scope of applications
and develop new markets with unique needs," said Dr. Sailesh Chittipeddi. "Our deepening
collaboration with Sequans enhances our global presence with
best-in-class cellular IoT solutions."
Forward Looking Statements
This press release contains
forward-looking statements regarding future events or our future
financial performance and potential financing sources. All
statements other than present and historical facts and conditions
contained in this release, including any statements regarding the
expected timing of the closing of the equity investment and
potential for joint business expansion, are forward-looking
statements (within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended). These statements are only predictions and reflect our
current beliefs and expectations with respect to future events and
are based on assumptions and subject to risk and uncertainties and
subject to change at any time. We undertake no obligation to update
the information made in this release in the event facts or
circumstances subsequently change after the date of this press
release. We operate in a very competitive and rapidly changing
environment. New risks emerge from time to time. Given these risks
and uncertainties, you should not rely on or place undue reliance
on these forward-looking statements. Actual events or results may
differ materially from those contained in the projections or
forward-looking statements.
About Sequans
Sequans Communications S.A. (NYSE: SQNS)
is a leading developer and supplier of cellular IoT
connectivity solutions, providing chips and modules for 5G/4G
massive and broadband IoT. For 5G/4G massive IoT applications,
Sequans provides a comprehensive product portfolio based on its
flagship Monarch LTE-M/NB-IoT and Calliope Cat 1 chip platforms,
featuring industry-leading low power consumption, a large set of
integrated functionalities, and global deployment capability. For
5G/4G broadband IoT applications, Sequans offers a
product portfolio based on its Cassiopeia Cat 4/Cat 6 4G and
high-end Taurus 5G chip platforms, optimized for
low-cost residential, enterprise, and industrial
applications. Founded in 2003, Sequans is based in
Paris, France with additional
offices in the United States,
United Kingdom, Israel, Hong
Kong, Singapore,
Finland, Taiwan, South
Korea, and China. Visit
Sequans online at www.sequans.com, and follow us on
Twitter and Linked-In.
Sequans media relations: Kimberly
Tassin (USA),
+1.425.736.0569, kimberly@sequans.com
Sequans investor relations: Kim
Rogers (USA), +1
385.831.7337, kim@haydenir.com
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SOURCE Sequans Communications