Sequans closes strategic 5G deal with Chinese partner
Sequans Communications S.A., a leading developer and provider of 5G/4G for IoT devices, has announced the closing of a multi-year, strategic 5G licensing agreement with a new strategic partner.
Under the terms of the agreement, the first three years’ revenue is expected to be in excess of $50 million. An initial payment in excess of 25% of the license will be received within 30 days of the closing, with additional milestone payments scheduled to be received regularly over the next three years. The partner has the rights to manufacture and sell the Taurus 5G platform exclusively in the Chinese market for negotiated royalty payments on its future chipset sales.
The Taurus 5G platform is 3GPP Release 16 compliant and optimized to address a wide range of enhanced broadband and critical IoT applications, including fixed wireless access, mobile computing, private and vertical networks, industrial machinery, AR/VR, and drones. According to Techno Systems Research, the global addressable market is estimated to be more than 250 million devices by 2025.
“We are delighted to announce this new 5G strategic licensing agreement for our Taurus platform, which we expect to fund the balance of its development and expand our addressable market to China, a market currently not served by Sequans,” stated Georges Karam, CEO of Sequans. “The agreement will generate licensing revenue over the first three years and royalty revenue for 20 years on the sale of partner’s products based on our 5G technology. For the remainder of 2022, we expect this licensing revenue, when combined with our current expectations for the rest of our business, will enable us to target non-IFRS operating profitability for the second half of the year and non-IFRS operating break-even in 2023.”
Mr. Karam concluded, “We believe our Taurus technology is uniquely positioned to be a leading 5G technology fully optimized for enhanced broadband and critical IoT applications. This, combined with the flexibility of our business model, makes us an attractive potential partner to many players interested in new 5G applications and markets.”
If you enjoyed this article, you will like the following ones: don't miss them by subscribing to :
