SoftBank said that its investment in Cubic Telecom is expected to close in the first half of 2024
Japanese telecommunications operator SoftBank announced an agreement through which it will acquire a 51% equity stake in Irish firm Cubic Telecom, a provider of software-defined connected vehicle solutions.
Under the terms of the deal, SoftBank committed to pay 473 million euros ($510 million) for the equity stake. With this investment, SoftBank and Cubic Telecom will form a strategic global partnership to focus on software-defined connected vehicles and other high-value Internet-of-Things (IoT) assets.
After the investment closes, Barry Napier will continue to lead Cubic Telecom as CEO and board member. Daichi Nozaki, SoftBank’s senior vice president responsible for its global business, and two other SoftBank appointees will join Cubic Telecom’s board. Also, with the close of the investment, Cubic Telecom will become a consolidated subsidiary of SoftBank.
Cubic Telecom’s platform for application and connectivity enablement (PACE) allows OEMs to monitor, manage and update many aspects of a vehicle or device in real-time, globally, via mobile connectivity – meaning vehicles can be tailored to the requirements of a country or region while complying with different regulatory mandates. Vehicles and devices can receive new features and functionality over-the-air (OTA) throughout their lifetime, which improves performance, safety, comfort and value to ensure the best user experience, SoftBank said.
Cubic Telecom currently has agreements with more than 90 mobile network operators (MNOs), connecting more than 17 million vehicles in over 190 countries and regions.
“In line with our ‘Beyond Japan’ strategic growth initiative, we are extremely pleased to be teaming up with Cubic Telecom to make a full-fledged entry into the fast-growing market for high-value IoT asset connectivity. With its global leadership position, we are convinced Cubic Telecom is the best partner for this opportunity, and we look forward to building connectivity platforms for next-generation social infrastructure,” said Junichi Miyakawa, president and CEO of SoftBank.
Barry Napier, CEO at Cubic Telecom, said: “The focus on software rather than hardware means manufacturers can increase the value of a vehicle or device by adding new functionality, over-the-air, which will improve safety, comfort and performance. This, alongside the opportunity AI presents, will open up new collaborations and business models. The opportunities ahead of us are endless.”
By collaborating with SoftBank, which has an extensive customer base in Japan and other Asia-Pacific countries and regions, Cubic Telecom will gain access to new sales channels. SoftBank and Cubic Telecom said they will also explore ways to generate synergies and develop new services, such as utilizing satellite and stratospheric-based Non-Terrestrial Network (NTN)-based solutions that provide connectivity to vehicles and IoT devices in areas that cannot be reached by traditional ground-based networks.
The Japanese telco said that its investment in Cubic Telecom is subject to regulatory approvals in various jurisdictions, and other customary closing conditions and is expected to close in the first half of 2024.
