Renesas Extends Sequans Acquisition Deadline to Feb 5

On January 22nd, Renesas Electronics and Sequans jointly announced a significant development in their acquisition agreement. Renesas Electronics has decided to extend the expiration date of its acquisition offer, proposing to acquire all outstanding common shares of Sequans at a rate of $0.7575 per share. Additionally, Renesas Electronics aims to acquire Sequans' American Depositary Shares (ADS) at a rate of $3.03 per ADS, with each ADS representing four common shares. It's important to note that these prices exclude any interest and applicable withholding taxes.

The original expiration date for the acquisition offer was set for around 11:59 PM New York time on January 22, 2024. However, this deadline has now been extended to the same time on February 5, 2024. This extension is subject to further changes or early termination. The primary purpose of this extension is to allow sufficient time for meeting the outstanding closing conditions of the acquisition, which includes obtaining regulatory approvals. Noteworthy exclusions from the regulatory approvals are the previously announced CFIUS approval, NSIA approval, and Taiwan approval for merger control.

Sequans, founded in 2003, specializes in the design and development of chips and modules for Internet of Things (IoT) devices. The company offers a diverse range of 5G/4G cellular IoT products, encompassing 5G NR, Cat-4, Cat-1, and LTE-M/NB-IoT. These products provide robust and gateway-free wireless connectivity for IoT applications. Renesas Electronics has outlined its post-acquisition plans, intending to integrate Sequans' extensive cellular connectivity products and intellectual property into its core product portfolio, which includes microcontrollers and microprocessors.

This strategic acquisition positions Renesas Electronics to further expand its expertise in IoT connectivity technology. The companies are committed to completing the acquisition successfully, with the extended deadline allowing for the fulfillment of all necessary conditions, ensuring a seamless integration of Sequans into Renesas Electronics' ecosystem.