Sequans Communications has acquired Zurich-based ACP Advanced Circuit Pursuit AG (AGP).
The company notes that the acquisition will strengthen Sequans' 5G reduced-capability (eRedCap) development, while it will accelerate its time-to-market for next-generation IoT chips.
ACP specializes in RF CMOS technology, plus systems-on-chip (SoCs) for cellular IoT and 5G-enabled enhanced mobile broadband (EMB).
Financial terms of the transaction were not disclosed, though Sequans said the deal has been structured as a cash transaction.
“Their advanced, ready-to-use technology and engineering expertise perfectly complement our existing capabilities and will be instrumental in driving our product innovations forward," said Georges Karam, chairman and CEO of Sequans.
France-based Sequans was acquired by semiconductor giant Qualcomm last year. The company specializes in supplying 4G and 5G semiconductor products for IoT.
“Joining Sequans marks a pivotal moment for the ACP team,” added 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.”
Sequans noted that the deal will see ACP's workforce integrate with its company, while adding that it expects the deal to have minimal impact on the company’s planned operating expenses for 2025.
The company added that it expects the acquisition to generate modest revenue this year, before potentially contributing several million dollars next year.
“The 5G eRedCap market is expected to surpass 4G IoT in scale, and this acquisition strengthens Sequans’ ability to capture this expanding market opportunity,” added Karam.