Renesas Electronics Corporation has terminated its $249 million deal to acquire Sequans Communications, a provider of Cellular IoT chipset solutions.
Renesas had made a tender offer to purchase shares of Sequans for $0.7575 per ordinary share and American Depositary Shares of Sequans for $3.03 per ADS.
The transaction valued Sequans at approximately $249 million, including net debt of approximately $52 million.
The development follows Renesas receiving a confirmation from the National Tax Agency of Japan that consummation of the reorganization provided in the MoU would require Renesas to recognize taxable gain and pay tax.
The termination will not have material impact on Renesas’ core strategy of driving its technologies into higher growth industries. Renesas continues to see significant opportunities from cellular IoT technology and intends to build on the momentum through its partnership with Sequans.
