Why Is Qualcomm's Stock Moving Today?

Qualcomm Incorporated QCOM shares are trading higher Friday following the company’s announcement of a definitive agreement to acquire Sequans Communications’ 4G IoT technologies for $200 million.

What To Know: The acquisition includes certain employees, assets and licenses from Sequans, a France-based company specializing in 4G and 5G semiconductor solutions for the Internet of Things (IoT). While Qualcomm will integrate Sequans’ 4G IoT technologies into its offerings, Sequans will retain the right to continue using the technology commercially through a perpetual license agreement. This arrangement allows Sequans to expand its 4G business and focus on its 5G portfolio, with the deal expected to close by the end of October 2024, pending French regulatory approval.

Nakul Duggal, Qualcomm’s group general manager for automotive, industrial and embedded IoT, emphasized that the acquisition will bolster Qualcomm’s offerings of low-power solutions for reliable cellular connectivity in Industrial IoT applications, positioning the company for growth in one of the largest addressable opportunities in digital transformation.

Sequans’ CEO, Georges Karam, noted that the deal underscores the value of Sequans’ 4G IoT technology and provides the company with significant capital to further invest in its IoT business ambitions. The company also reported improved preliminary second-quarter financial results, with revenues of $9.7 million, up from $9.2 million year-over-year.

QCOM Price Action: As of the latest update, Qualcomm’s stock was trading at $171.91, up by 1.72% or $2.91 according to Benzinga Pro.

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