Semtech is selling its cellular module business to Compal Electronics for $62m in cash, and the buyer is taking the customer relationships and the people with it

The document is a one-item 8-K and the number sits in the first sentence.

Semtech Corporation has entered into a definitive agreement to sell its cellular module business to Compal Electronics of Taiwan for $62 million in cash, subject to customary adjustments, according to a filing accepted at 06:01 Eastern on Thursday. Both boards have approved it. The release attached to the filing was issued the same morning from Camarillo, California.

What Compal is buying is described broadly. The agreement covers substantially all of the assets and operations that make up the business, and the release names the associated intellectual property, the customer relationships and the personnel among them.

The timing

Not soon. Closing is expected during the fourth quarter of Semtech's 2027 financial year, subject to customary conditions that include receipt of certain regulatory approvals.

What the company says it is doing

Hong Hou, Semtech's president and chief executive, is quoted in the release saying the divestiture "sharpens our focus on the product portfolio where we have the strongest conviction in growth and industry leadership: data center and LoRa connectivity."

Neither the filing nor the release gives a revenue figure, a margin or a headcount for the business being sold, so the size of what is leaving is not established by either document. UBS Investment Bank advised Semtech on the transaction and O'Melveny and Myers acted as its legal counsel. The filing is signed by Mark Lin, the chief financial officer.