SWIR - Semtech confirms discussion with Sierra Wireless to acquire company for $31 per share

Semtech Corporation ( NASDAQ: SMTC ) confirmed on Tuesday that it is in discussions to acquire Sierra Wireless ( NASDAQ: SWIR ) for $31 per share, but offered no assurances that a deal would be done.

"No assurance can be given that Semtech will determine to continue such discussions or enter into any definitive agreement regarding any transaction or, if executed, whether any such transaction would be consummated," the company said in a statement, adding that it would not make any other announcements regarding the potential deal unless it enters into a "binding, definitive agreement."

On Monday, it was reported that Semtech ( SMTC ) was looking at buying Sierra Wireless ( SWIR ), a communications equipment company, and that a deal could be announced within days.

Shortly after the headlines appeared, investment firm Roth Capital said it was skeptical that a deal would happen, with analyst Scott Searle calling it  "extremely unlikely," pointing to Semtech's ( SMTC ) core skill sets and gross margin profiles.

Last month, Roth said there was a buying opportunity in Sierra Wireless ( SWIR ) the stock going into the company's second-quarter results .

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