(Bloomberg) — Semiconductor maker Semtech Corp. is in advanced talks to buy Canadian peer Sierra Wireless Inc., according to people familiar with the matter.
A deal could be announced within days, the people said, asking not to be identified because the matter is private. No final decision has been made and discussions could fall through, the people added.
Sierra Wireless rose 19% to $29.60 at 2:26 p.m. in New York trading Monday, giving the company a market value of about $1.2 billion. Semtech fell 6.6% to $58.19 for a market value of about $3.7 billion.
Representatives for Semtech and Sierra didn’t immediately respond to requests for comment.
Semiconductors have been an area of busy dealmaking in recent years despite the long regulatory reviews the transactions often face. MaxLinear Inc., a maker of chips for broadband communications, agreed in May to acquire Silicon Motion Technology Corp.
Camarillo, California-based Semtech provides analog and mixed-signal chips, including wireless connectivity, power management and products used in video broadcast equipment.
Based outside Vancouver in Richmond, British Columbia, Sierra Wireless makes so-called Internet of Things technology, a set of components designed to equip electronic systems with internet connections. Semtech has been making inroads into this area and a takeover of Sierra would complement its Internet of Things business.
(Updates trading in third paragraph)
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