Internet of Things solutions provider Sierra Wireless Inc.
shares rose 6.8% to $30.05 in after-hours trading Tuesday after semiconductor manufacturer Semtech Corp.
said it will acquire all of Sierra’s outstanding shares for about $1.2 billion in an all-cash deal.
Sierra Wireless shareholders will receive $31 per common share under the terms of the agreement, a 25% premium over last Friday’s closing price.
The transaction has been approved by the boards of both companies and is expected to close in Semtech’s fiscal 2023.
Sierra said it is canceling its second-quarter earnings conference call, previously scheduled for Aug. 11, in light of the pending transaction.
The deal is expected to be immediately accretive to Semtech’s adjusted earnings per-share before synergies.
Bloomberg reported Monday that a deal between the two companies was in the works.
Semtech shares rose 1.5% to $56.15 in after-hours trading.