SoftBank, a prominent global technology conglomerate, has made a significant move by acquiring a majority stake in Cubic Telecom, a leading player in the connectivity software industry.
This strategic investment involves SoftBank acquiring a 51% share in Cubic Telecom, valuing the company at an impressive €927.4 million. The remaining 49% share will be retained by existing investors. The deal is expected to close in the first half of 2024, marking a significant milestone for both parties.
Barry Napier, the CEO of Cubic Telecom, will continue in his role, ensuring continuity in leadership. This investment not only benefits Napier and other key stakeholders but also positions Cubic Telecom to capitalise on the growing demand for connected vehicles and other connected objects.
The collaboration with SoftBank is set to unlock new opportunities for expansion into new industries and drive innovation in satellite-based solutions and next-generation social infrastructure.
Deal Details and Valuation
The agreement between SoftBank and Cubic Telecom involves a significant investment and acquisition of a majority stake, with Cubic Telecom being valued at €927.4m.
As part of the agreement, SoftBank will provide a €473m investment in Cubic Telecom, acquiring a 51% share in the company. The remaining 49% share will be held by current investors.
The agreement is expected to be finalized in the first half of 2024.
This valuation reflects the significant potential and growth prospects of Cubic Telecom, given its specialization in connectivity software and its extensive network of mobile operator agreements in over 190 countries.
With this investment and acquisition, SoftBank aims to utilize Cubic Telecom’s expertise and expand its presence in the rapidly growing connected vehicle and IoT asset connectivity markets.
Impact on CEO and Investors
CEO Barry Napier and the current investors of Cubic Telecom stand to benefit from SoftBank’s acquisition of a majority stake in the company. As part of the deal, Napier will continue to serve as CEO and a board member of Cubic Telecom, ensuring continuity and stability in the company’s leadership.
Additionally, the pre-existing joint largest shareholder, Napier himself, will reap the rewards of the acquisition. Irish investors ACT and the Irish Strategic Investment Fund, who also hold a stake in Cubic Telecom, will benefit from the deal as well.
With SoftBank’s backing, Cubic Telecom is poised to become a significant player in the tech industry, with ACT believing it has the potential to be the most significant tech company from Ireland.
Furthermore, Cubic Telecom’s board will gain three members from SoftBank, adding valuable expertise and guidance to the company’s strategic direction.
Cubic Telecom’s Business and Clients are
Continuing with the impact of SoftBank’s acquisition, Cubic Telecom’s business and clients centre around its specialisation in connectivity software, facilitating connections between various vehicles and online services.
The company has established itself as a leader in this field, connecting cars, tractors, motorbikes, and trucks to online services. Cubic Telecom currently holds 90 mobile network operator deals in over 190 countries, connecting over 17 million vehicles.
With the increasing demand for vehicle connections, the company expects this number to grow exponentially. Furthermore, Cubic Telecom has expanded its services beyond the automotive industry, providing software services and connection technology for drones and collaborating with companies like John Deere in the agriculture machinery sector.
Its extensive network of agreements with operators worldwide positions the company well to comply with regulatory and operational requirements in different countries.
Diversification Into Other Sectors
Cubic Telecom has extended its services to industries beyond automotive, establishing itself as a leading provider of connectivity software and connection technology for drones and other sectors.
The company has ventured into the drone industry by providing software services and connection technology. Additionally, Cubic Telecom has collaborated with John Deere, an agriculture machinery company, indicating its expansion into the agricultural sector.
The increasing demand for connections between objects and telecoms networks has led to Cubic Telecom negotiating agreements with multiple operators worldwide. With its expertise in compliance with regulatory and operational issues in different countries, Cubic Telecom is well-equipped to cater to the diverse needs of various industries.
Through its partnership with SoftBank, Cubic Telecom aims to develop new services, including satellite-based solutions, and build connectivity platforms for next-generation social infrastructure.
Collaboration with Softbank and Future Plans
The partnership between SoftBank and Cubic Telecom opens up new avenues for collaboration and future plans, leveraging their combined expertise to develop innovative services and connectivity solutions.
With SoftBank’s investment and acquisition of a majority stake in Cubic Telecom, the two companies aim to expand their presence in Japan and the Asia-Pacific region by utilising SoftBank’s extensive sales channels.
They also plan to develop new services, including satellite-based solutions, leveraging SoftBank’s expertise in IoT asset connectivity.
Cubic Telecom’s platform, which enables over-the-air updates for vehicles and devices, will play a crucial role in building connectivity platforms for next-generation social infrastructure.
This collaboration not only enhances Cubic Telecom’s global reach but also positions the partnership as a formidable force in the tech industry, capable of delivering cutting-edge solutions to meet the growing demands of the market.
Summary
In conclusion, SoftBank’s acquisition of a majority stake in Cubic Telecom represents a significant milestone for both companies. This strategic move not only values Cubic Telecom at an impressive £834.2 million but also ensures continuity in leadership with CEO Barry Napier retaining his role.
With its expertise in connectivity software and a wide network of mobile operator deals, Cubic Telecom is well-positioned to capitalise on the growing demand for connected vehicles and expand into new industries.
The collaboration with SoftBank opens up opportunities for innovative solutions and future growth.
