Sequans Acquires Zurich-based ACP

Strengthens Wireless IP and Expands Business Opportunities

Paris, France - Newsfile Corp. - January 21, 2025 - Sequans Communications S.A. (NYSE: SQNS), a leading provider of 4G and 5G semiconductors and modules for the Internet of Things, today announced the acquisition of ACP Advanced Circuit Pursuit AG ("ACP"), a Zurich-based company recognized for its robust IP portfolio and expertise in RF CMOS technology.

The acquisition strengthens Sequans' technology leadership in 5G eRedCap development and accelerates its time-to-market for next-generation IoT chips. In addition, ACP's proven radio technology and successful track record in selling its technology across various wireless market segments are expected to create new growth opportunities for Sequans.

"We are thrilled to welcome the ACP team to Sequans," said Georges Karam, Chairman and CEO of Sequans. "Their advanced, ready-to-use technology and engineering expertise perfectly complement our existing capabilities and will be instrumental in driving our product innovations forward."

"Joining Sequans marks a pivotal moment for the ACP team," said Dr. Qiuting Huang, CEO of ACP. "Sequans' pioneering leadership in cellular IoT provides an ideal platform for integrating our technologies and accelerating innovation in the 5G IoT product roadmap."

The acquisition brings a small, highly skilled team to Sequans with minimal impact on the company's planned operating expenses for 2025. The acquisition is expected to generate modest revenue in 2025 and potentially contribute several million dollars in 2026 through ACP's existing customer relationships.

"The 5G eRedCap market is expected to surpass 4G IoT in scale, and this acquisition strengthens Sequans' ability to capture this expanding market opportunity," concluded Karam.

The deal, structured as a cash transaction, underscores Sequans' ability to execute its strategy while maintaining disciplined financial management.

Forward-Looking Statements

This press release contains certain statements that are, or may be deemed to be, forward-looking statements with respect to the financial condition, results of operations and business of Sequans, including the impact of the recently closed ACP acquisition on product innovation, growth prospects and future revenue expectations. These forward-looking statements include, but are not limited to, statements that are not historical fact. These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements also often use words such as "anticipate," "target," "continue," "estimate," "expect," "forecast," "intend," "may," "plan," "goal," "believe," "hope," "aims," "continue," "could," "project," "should," "will" or other words of similar meaning. These statements are based on assumptions and assessments made by Sequans in light of its experience and perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct, and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this announcement.

Forward-looking statements are not guarantees of future performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Such risks and uncertainties include, but are not limited to, potential adverse reactions or changes to business relationships resulting from the completion of the transaction; significant or unexpected costs, charges or expenses resulting from the transaction; and negative effects of the transaction on the market price of Sequans' ADS. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business and competitive environments, market and regulatory forces. If any one or more of these risks or uncertainties materialize or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward-looking statements should therefore be construed in the light of such factors. A more complete description of these and other material risks can be found in Sequans' filings with the SEC, including its annual report on Form 20-F for the year ended December 31, 2023, subsequent filings on Form 6-K and other documents that may be filed from time to time with the SEC. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this announcement. Sequans undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by applicable law.

About Sequans Communications

Sequans Communications S.A. (NYSE: SQNS) is a leading semiconductor company specializing in wireless cellular technology for the Internet of Things (IoT). Our engineers design and develop innovative, secure, and scalable technologies that power the next generation of connected devices. We offer a wide range of solutions, including chips, modules, IP, and services. Our LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap/eRedCap platforms are optimized for IoT, delivering breakthroughs in wireless connectivity, power efficiency, security, and performance. Established in 2003, Sequans is headquartered in France and has a global presence with offices in the United States, United Kingdom, Israel, Hong Kong, Singapore, Finland, Taiwan, and China.

About ACP Advanced Circuit Pursuit

ACP Advanced Circuit Pursuit AG is a leading specialist in integrated circuits for cellular communications. Headquartered in Zürich, Switzerland, ACP offers a comprehensive portfolio of RF transceivers and systems-on-chip (SoCs) for the cellular Internet of Things (IoT) and 5G-enabled enhanced mobile broadband (EMB).

Sequans investor relations: Kim Rogers (USA), +1 385.831.7337, ir@sequans.com
Sequans media relations: Linda Bouvet (France), +33 1 70 72 16 00 media@sequans.com

The issuer is solely responsible for the content of this announcement.