Compal Electronics, Inc. agreed to acquire substantially all of the assets and operations of Semtech Corporation’s cellular module business for $62 million in cash, subject to customary adjustments. The transaction has been approved by the boards of directors of both companies and is expected to close in the fourth quarter of 2026, subject to receipt of regulatory approvals and the satisfaction or waiver of customary closing conditions.
The acquired business was formerly part of Sierra Wireless, which Semtech acquired in 2023. It designs, develops and sells cellular modules incorporating technologies such as 5G, 4G LTE and low-power wide-area networking and has a global customer base and R&D team. It is one of the leading global providers of cellular internet of things (IoT) solutions.
Compal is a global electronics manufacturer headquartered in Taiwan and listed on the Taiwan Stock Exchange. Through the transaction, Compal expects to expand its global IoT business and customer base, enhance its cellular module product capabilities and integrate the parties’ research & development, manufacturing, supply chain, operations and global sales resources.
Semtech is a Nasdaq-listed provider of high-performance semiconductor, IoT connectivity and cellular infrastructure solutions headquartered in Camarillo, California.
The S&C team advising Compal is led by Ching-Yang Lin and includes Brian Hu and Martin Xi. Rachel Yu, Elizabeth Cheung and April Yu advised on intellectual property matters. Jameson Lloyd, Aaron Milevsky, Colin Casey and Theodore Danielson advised on tax matters. Juan Rodriguez, Axel Beckmerhagen, Arnaud Berdou and Dominic Connors advised on antitrust and non-U.S. foreign direct investment matters. Eric Kadel Jr. and Manon Scales advised on CFIUS matters.