Semtech sells cellular module unit for $62 million

• Semtech Corporation (Nasdaq:SMTC) agreed to sell its cellular module business to Compal Electronics for $62 million in cash.
• The deal transfers substantially all cellular module assets, intellectual property, customer relationships, and personnel to Compal.
• Semtech said the divestiture will allow it to focus resources on data center networking and LoRa connectivity products.

Semtech (NASDAQ:SMTC) agreed to sell its cellular module business to Compal Electronics for $62 million in cash as part of a portfolio shift toward data center networking and LoRa connectivity.

The transaction follows Semtech’s review of its business operations and will move the cellular module assets and operations to Compal, including related intellectual property, customer relationships, and employees.

The agreement has been approved by the boards of directors of both companies, and completion is expected during Semtech’s fiscal 2027 fourth quarter, subject to regulatory approvals and other customary closing conditions.

Semtech did not disclose additional financial details about the cellular module business being sold or provide expected changes to its workforce following the transaction.

Semtech develops semiconductor products used in data center networking, Internet of Things applications, cellular connectivity, and connected devices.

The company said the sale reflects its strategy of concentrating investment on areas including data center technology and LoRa connectivity, while Compal will take ownership of the cellular module business operations after closing.