The transaction, valued at more than $180 million. is expected to be complete by the end of this month
Japanese telecom operator KDDI Corporation confirmed it will acquire the outstanding shares of compatriot company Soracom, a provider of cloud-based communication platforms for the internet of things (IoT), making the latter a consolidated subsidiary of KDDI.
According to Japanese press reports, the acquisition is expected to be fully completed by the end of August, and carriers a total value of approximately $181 million.
Soracom’s internet of things platform combines over-the-air connectivity with cloud capability to deliver secure communication optimized for IoT and M2M. Soracom customers can operate and manage connections and devices from the web console and API, and can quickly launch and scale IoT systems featuring advanced cloud integration and private cloud connections, the Japanese firm said.
Since launching in September 2015, Soracom has expanded operations to the United States and Europe, initiated service in over 120 countries, and developed a worldwide base of over 7,000 customers.
Soracom has also established an IoT ecosystem of over 350 registered partners in the Soracom Partner Space.
KDDI has provided IoT/M2M services for over 15 years and offers mobile communication services in various industries, including smart meters and remote monitoring. In addition, KDDI is making advances in the development of next-generation networks such as cellular LPWA (LTE-M/NB-IoT) and 5G.
The two companies will collaborate to promote the expansion of the joint IoT platform worldwide. In addition, both companies will apply the IoT/M2M knowledge and customer base that they have developed to date as they create a market-leading new joint IoT business.
KDDI also said that Soracom services will continue to be provided to new and future customers without any changes in service.
In March this year, Soracom announced the availability of its IoT platform and global IoT connectivity services in Europe. Headquartered in Tokyo, Soracom also has offices in Singapore, Copenhagen and Palo Alto.
