Please read the case study and answer the three questions that follow.

Semtech Corporation's Acquisition of Sierra Wireless, Inc.

Background and Acquisition Overview

In July

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$$Semtech Corporation made a strategic move by announcing its intention to acquire Sierra Wireless, Inc. for a substantial sum of $

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$$billion which was debt

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serviced.

This acquisition aimed to create a comprehensive Internet of Things

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IoT

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$$platform$,$ combining the ultra

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low power benefits of LoRa

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Semtech

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s technology

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$$with the higher bandwidth capabilities of cellular networks

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Sierra

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s technology

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Semtech's CEO, Mohan Maheswaran, and Sierra's CEO, Phil Brace, were pushing for the deal to close by October

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Key Factors and Challenges

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$$Complementary Technologies and Revenue Streams

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$$Semtech$,$ a player in the semiconductor industry, also sells LoraWAN, a technology that complements Sierra's wireless solutions.

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$$In the combined entity, there would be four

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$$business units two dedicated to the legacy Semtech semiconductor business and two dedicated to Sierra Wireless technology.

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$$US Department of Justice

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DOJ

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All US acquisitions and mergers require DOJ approval. After providing what Semtech thought was a thorough portfolio of information about the acquisition to the DOJ at the end of July

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$$in late September

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$$Semtech was asked for a second round of information. This scrutiny resulted in a delay to the transaction's closing date, which was eventually set for January

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$$The extended timeline added complexity and stakeholder uncertainty to the acquisition process. The stock value dropped by

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$$Global Workforce and Locations

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$$The combination of Semtech and Sierra Wireless resulted in a workforce of

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$$employees spread across multiple locations globally, in the Asia

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Pacific region

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$$North America

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NAM

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$$and Europe, Middle East and Africa

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EMEA

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$.$

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$$Market Challenges and Softening Demand

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$$By September

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$$the demand for both Semtech and Sierra products began to soften due to various factors:

China's Economy: Economic fluctuations impacted market dynamics.

Inflation and Interest Rate Increases: Rising inflation and the worst interest rate increases since

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$$affected business conditions. In a

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month period, the Federal Reserve had increased the interest rate by

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$$Synergies

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$$Semtech aimed for operational synergies of US$

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$$million within

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$$months post

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close.

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$$Impact on Stock Price and Stakeholders

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$$Stock Price Fluctuations The acquisition announcement caused Semtech's stock price to drop in value by

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$$External Stakeholders:

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$$Investors closely and actively monitored integration progress, leadership changes, and market conditions. Shareholders and investors assessed the acquisition's impact on financials, synergies, and growth prospects. Customers and partners awaited clarity on the combined company's offerings and service continuity.

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$$Inventory Management

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$$Inventory$,$ which had been scarce during the COVID

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$$pandemic$,$ had been shored up in anticipation of future sales but was now sitting on the company's balance sheet due to the softening of demand.

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$$Leadership Turmoil

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$$Within

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$$months of the acquisition's close date, the CEO, Maheswaran, was fired.

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$$The Board rapidly conducted a search for a new CEO which led to the appointment of Paula Pickle. She assumed the role on June

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$$Pickle faced the challenge of steering the combined entity toward success amidst market uncertainties and internal changes.

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This is the only fact that has been changed for the purpose of this case study. Questions Using concepts from the course, describe how you would approach this situation if you were Pickle.

Questions:

$1.$How to use Leader$-$Follower$-$Situation model to analyze this case?

$2.$How to make a change plan according to the change formula?