Semiconductor maker Semtech Corp is acquiring Sierra Wireless Inc in all-cash transaction valuing the Canadian company at $1.2 billion including debt.
Semtech said in a statement that it’s paying $31 a share for Sierra Wireless, a premium of about 25% to the closing price before Bloomberg News reported the merger talks. The deal is expected to roughly double Semtech’s annual revenue, according to the statement.
Semiconductors have been an area of busy dealmaking in recent years despite long regulatory reviews the transactions often face. MaxLinear, a maker of chips for broadband communications, agreed in May to acquire Silicon Motion Technology Corp.