Taiwanese firm Compal Electronics has bought Semtech’s cellular module business for $62m.

California-based Semtech provides semiconductors powering AI data centre networking, IoT, cellular connectivity and intelligent connected devices worldwide. It has entered into a definitive agreement to sell its cellular module business to Compal Electronics for $62m in cash, subject to customary adjustments.

The transaction has been approved by both Semtech’s and Compal’s boards of directors.

Compal will acquire all the assets and operations comprising Semtech’s cellular module business, including its associated intellectual property, customer relationships and personnel.

“This divestiture sharpens our focus on the product portfolio where we have the strongest conviction in growth and industry leadership: data centre and LoRa connectivity,” said Hong Hou, Semtech CEO. “It reflects the broader discipline we have been applying across the portfolio, concentrating our resources and our technology leadership where we believe we can create the most value over time.”

The transaction is expected to close during the fourth quarter of Semtech’s 2027 fiscal year, subject to the satisfaction or waiver of customary closing conditions, including receipt of certain regulatory approvals.

UBS Investment Bank served as financial advisor and O’Melveny & Myers served as legal counsel in connection with the transaction.

Semtech (Semtech.com) helps application developers in the infrastructure, industrial and consumer markets.

Taipei-based Compal Electronics (www.compal.com) makes notebook computers, smart phones, tablets, televisions, wearable devices and more for companies such as Apple, Alphabet, Acer, Cisco, Dell, Fujitsu, Hewlett-Packard, Lenovo, Panasonic, Sony and Toshiba.