February 27 news, Renesas Electronics announced the suspension of the acquisition of the French semiconductor company Sequans, Sequans shares plunged nearly 65% on the news! Sequans shares plummeted nearly 65% on the news after Sa Electronics announced it was suspending its acquisition of French semiconductor firm Sequans!

According to reports, Renesas announced on the 23rd, canceled the proposed acquisition of Sequans, stop the implementation of TOB on Sequans, the main reason for the acquisition of Sequans will occur originally unanticipated tax burden. Renesas pointed out that it received a notice from the National Tax Agency of Japan on February 15, stating that it would be subject to income tax if it acquired Sequans.

Last August, Japanese semiconductor maker Renesas Electronics agreed to buy French cellular IoT chip maker Sequans Electronics for $249 million in a deal that is expected to close in the first quarter of 2024, subject to formal approval from France‘s corporate labor commission and subsequent approval from local tax and regulatory authorities. The $249 million valuation covers all stock held by all shareholders, including U.S. stock, and also includes net debt.

Renesas Electronics will integrate Sequans‘ cellular IoT products and IP into its microcontroller, microprocessor, analog and mixed-signal front-end products. A statement from the companies said, "This acquisition will enable Renesas Electronics to immediately expand its footprint into the wide area network (WAN) market covering a broad range of data rates. It will also strengthen Renesas Electronics‘ already extensive portfolio of personal area (PAN) and local area network (LAN) connectivity products."

The acquisition is the latest in a wave of acquisitions for Renesas Electronics, which follows the acquisitions of UK-based power management and industrial IoT specialist Dialog (August 2021), Israeli enterprise Wi-Fi chipset and software provider Celeno (December 2021), and Austrian near-field communication (NFC) chip maker Panthronics ( June 2023)

Founded in 2003, Sequans specializes in cellular-based low-power wide area network (LPWAN) solutions, specifically NB-IoT and LTE-M solutions, as well as higher-power LTE-4G and 5G-based IoT hardware.

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