Japanese electronics company Renesas has taken a small equity stake in French IoT modules company Sequans Communications to strengthen go-to-market opportunities.

The deal should see Renesas executive vice president and head of the IoT and infrastructure business unit, Sailesh Chittipeddi, elected to the Sequans board of directors at the June 2022 shareholder meeting.

“Renesas values Sequans’ comprehensive cellular IoT offering, which brings our global customers and us advanced 4G and 5G IoT capabilities that can address the broadest scope of applications and develop new markets with unique needs,” said Chittipeddi. “Our deepening collaboration with Sequans enhances our global presence with best-in-class cellular IoT.”

Sequans provides cellular IoT chips and modules. It is expanding its existing 4G and 5G licensing agreements with Renesas, granting special rights to Renesas that strengthen the go-to-market opportunities for Sequans’ LTE-M and NB-IoT Monarch 2 and Taurus 5G platforms.

In particular, by building on Renesas’ sales, distribution and customer support capabilities, the deal allows Sequans to expand its serviceable addressable market to India.

The combined value of the business agreements and the equity investment, which is expected to close this week subject to customary closing conditions, is approximately $20m.

These multi-year agreements are designed to allow Sequans and Renesas to achieve several mutually beneficial goals. First, the agreements provide better control of manufacturing and product cost, which is important given the current supply problems.

Secondly, the agreements reinforce the joint product offerings and expand market opportunities. Thirdly, the equity stake and board seat facilitate management alignment to strengthen the partnership and make the joint business successful.

“We are pleased to further strengthen our relationship with Renesas with the LTE-M and NB-IoT and 5G businesses, as well as the opportunity to add Dr Chittipeddi to the Sequans board,” said Georges Karam, CEO of Sequans. “The expanded agreements reinforce our sales strategy and provide access to numerous new opportunities with a unique competitive solution while allowing us to leverage Renesas’ strong global brand and manufacturing advantages.”

Sequans is a developer and supplier of cellular IoT connectivity, providing chips and modules for 5G and 4G massive and broadband IoT. For 5G and 4G massive IoT applications, Sequans provides a product portfolio based on its flagship Monarch LTE-M and NB-IoT and Calliope Cat 1 chip platforms, featuring low power consumption, a large set of integrated functionalities, and global deployment capability.

For 5G and 4G broadband IoT applications, Sequans offers products based on its Cassiopeia Cat 4 and 6 4G and high-end Taurus 5G chip platforms, optimised for low-cost residential, enterprise and industrial applications.

Founded in 2003, Sequans is based in Paris, France, with additional offices in the USA, UK, Israel, Hong Kong, Singapore, Finland, Taiwan, South Korea and China.