By Michael Dabaie
Sequans Communications S.A.'s American depositary receipts were up 8.3% to $5.24 after the company said it is expanding its partnership with Renesas Electronics Corp.
The French provider of cellular IoT chips and modules said it was expanding its existing 4G/5G licensing agreements with Renesas, a supplier of advanced semiconductor solutions. The deal grants special rights to Renesas that strengthen the go-to-market opportunities for Sequans's LTE-M/NB-IoT Monarch 2 and Taurus 5G platforms, the company said.
In particular, the deal allows Sequans to expand its serviceable addressable market to India, the company said.
Renesas will take a small equity stake in Sequans. Renesas's executive vice president and head of IoT and infrastructure business unit, Sailesh Chittipeddi, will be nominated for election to the Sequans board.
The combined value of the business agreements and the equity investment, expected to close by Jan. 14, is about $20 million, Sequans said.
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(END) Dow Jones Newswires