Vancouver-headquartered Sierra said in a statement that it’s in “advanced discussions” with Camarillo, Calif.-based chipmaker Semtech. The proposed transaction values Sierra at US$31 a share, a 4.4 per cent premium to its Monday closing price on the Nasdaq. Bloomberg first reported the discussions on Monday. (The Logic, Bloomberg)

Talking point: Sierra makes components for Internet of Things (IoT) devices and networks, including 5G SIMs and routers. It brought in US$473.2 million in revenue in 2021, up 5.5 per cent year over year. Sierra’s stock has recovered from a deep slump in the early days of the pandemic, when it was trading as low as US$4.31 in March 2020. The semiconductor and component sector has continued to consolidate, with large players making several blockbuster deals. But smaller players targeting specific market segments like IoT are also coming together. Nasdaq-listed Semtech reported US$740.9 million in sales its fiscal year ended Jan. 30, 2022.