• Strengthens Qualcomm’s Industrial IoT portfolio and offers low-power solutions for reliable, optimized cellular connections for IoT applications

• Expands and accelerates Qualcomm’s leadership in digital transformation at the edge

• Sequans retains the license of 4G IoT technology for its ongoing use and will continue to serve its IoT markets with a strengthened balance sheet

• Sequans retains full ownership of its 5G technology

Paris, France and San Diego, California–(Newsfile Corp. – August 23, 2024) – Qualcomm Incorporated (NASDAQ: QCOM), a global leader in high-performance, low-power solutions, through its subsidiary Qualcomm Technologies, Inc. (“Qualcomm”), and Sequans Communications SA (NYSE: SQNS), a provider of 4G and 5G semiconductor solutions for the Internet of Things (IoT), today announced that they have entered into a definitive agreement under which Qualcomm will purchase Sequans’ 4G IoT technologies. The acquisition includes certain employees, assets and licenses. The transaction is subject to customary closing conditions, including French regulatory approval.

Qualcomm is revolutionizing industries, redefining business models and enhancing user experiences through its cutting-edge IoT solutions. Qualcomm® IoT technologies and solutions leverage the connected intelligent edge of the real world to deliver end-to-end, turnkey solutions that enable customers to digitally transform their businesses to optimize operations, monetize massive amounts of data, develop new innovations and realize cost savings.

Sequans is a designer, developer and supplier of cellular semiconductor solutions for massive and critical IoT markets. The addition of Sequans’ 4G IoT technologies to Qualcomm’s advanced end-to-end IoT solutions will strengthen Qualcomm’s Industrial IoT portfolio and provides a unique opportunity to establish a leadership position in this space.

“Digital transformation is being driven by high-performance processing and intelligence at the edge, positioning Qualcomm for growth in one of the biggest opportunities,” said Nakul Duggal, group general manager of Automotive, Industrial and Embedded IoT and Cloud Computing at Qualcomm Technologies, Inc. “The acquisition of Sequans’ 4G IoT technology complements Qualcomm’s broad portfolio and strengthens our offering of low-power solutions for reliable, optimized cellular connections for industrial IoT applications for enterprise customers.”

Sequans retains all rights to further commercial use of the technology under a perpetual license agreement, supporting the company in expanding its 4G business and developing its 5G portfolio.

“We are pleased to announce this important transaction with Qualcomm. This agreement underscores the value of our 4G IoT technology and provides us with significant capital to continue investing in our IoT business ambitions,” said Georges Karam, CEO of Sequans. “We are committed to pushing the boundaries of innovation and delivering cutting-edge 4G/5G semiconductor solutions that meet the increasing demands of AI-powered Internet of Things applications. This transaction is expected to provide us with the resources and flexibility to enhance our product offerings and expand our market presence.”

About Qualcomm

Qualcomm relentlessly innovates to deliver intelligent computing everywhere and help the world solve some of its most important challenges. Our proven solutions drive transformation in key industries, and our Snapdragon® branded platforms enable exceptional customer experiences. Building on our nearly 40 years of leadership in setting industry standards and creating groundbreaking technology breakthroughs, we deliver cutting-edge AI, high-performance, low-power computing, and unmatched connectivity. Together with our ecosystem partners, we enable the next generation of digital transformation to enrich lives, improve businesses, and advance societies. At Qualcomm, we engineer human progress.

Qualcomm Incorporated includes our licensing business, QTL, and the majority of our patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, together with its subsidiaries, operates substantially all of our engineering and research and development functions and substantially all of our product and services businesses, including our QCT semiconductor business. Snapdragon and Qualcomm branded products are products of Qualcomm Technologies, Inc. and/or its subsidiaries. Qualcomm patented technologies are licensed from Qualcomm Incorporated.

About Sequans

Sequans Communications SA (NYSE: SQNS) is a leading semiconductor company specializing in wireless cellular technology for the Internet of Things (IoT). Our engineers design and develop innovative, secure and scalable technologies that power the next generation of connected devices. We offer a broad range of solutions including chips, modules, IP and services. Our Monarch ® (NB-IoT/LTE-M), Calliope (LTE Cat-1/Cat-1bis) and Taurus (5G NR) platforms are optimized for IoT and deliver breakthroughs in wireless connectivity, energy efficiency, security and performance.

Founded in 2003, Sequans is headquartered in France and has a global presence with offices in the US, UK, Israel, Hong Kong, Singapore, Finland, Taiwan and China.

Forward-looking statements

This press release contains certain statements that are, or may be deemed to be, forward-looking statements with respect to the financial condition, results of operations and/or business of Sequans and Qualcomm following the completion of the transaction. These forward-looking statements include, but are not limited to, statements regarding the satisfaction of the conditions to the completion of the proposed transaction and the expected completion of the proposed transaction, the timing and benefits thereof, and other statements that are not historical facts. These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements also frequently use words such as “anticipate,” “seek,” “continue,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “goal,” “believe,” “hope,” “target,” “continue,” “could,” “project,” “should,” “will” or other words of similar meaning. These statements are based on assumptions and estimates made by Sequans or Qualcomm, as the case may be, in light of their experience and perceptions of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future, and the factors described in connection with these forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Although the expectations reflected in these forward-looking statements are believed to be reasonable, there can be no assurance that such expectations will prove to be correct and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this announcement.

Forward-looking statements are not guarantees of future performance. Such forward-looking statements involve known and unknown risks and uncertainties that could materially affect expected results and are based on certain key assumptions. Such risks and uncertainties include, but are not limited to, the possible failure to satisfy the conditions to completion of the proposed transaction due to failure to receive necessary regulatory or other approvals; the outcome of any legal proceedings that may be brought against Sequans and/or others in connection with the transaction; possible adverse reactions or changes in business relationships as a result of the announcement or completion of the proposed transaction; significant or unexpected costs, fees or expenses as a result of the proposed transaction; and adverse effects of such announcement or completion of the proposed transaction on the market price of Sequans’ ADSs and ordinary shares. Many factors could cause actual results to differ materially from those projected or implied by forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements include changes in the global, political, economic, business, competitive environment, market and regulatory forces. Should one or more of these risks or uncertainties materialize, or should one or more of the assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Such forward-looking statements should therefore be interpreted in light of these factors. A more complete description of these and other material risks can be found in Sequans’ filings with the United States Securities and Exchange Commission (SEC), including its Annual Report on Form 20-F for the fiscal year ended December 31, 2023, subsequent filings on Form 6-K and other documents that may be filed with the SEC from time to time, and Qualcomm’s filings with the SEC, including its most recent Annual Report on Form 10-K and subsequent periodic reports on Form 10-Q and Form 8-K. Sequans’ and Qualcomm’s respective filings with the SEC are available on the SEC’s website at www.sec.gov. Because of these uncertainties and risks, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this announcement. Neither Sequans nor Qualcomm undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

###

To view the original version of this press release, please visit https://www.newsfilecorp.com/release/220901