Nanosatellite IoT network operator Astrocast is planning to acquire IoT-as-a-service firm Hiber, according to an agreement the two companies announced last week. It is just one of several recent IoT-related acquisitions as bth market activity and market consolidation are heating up in the sector.
Lausanne, Switzerland-based Astrocast is buying all of the shares of Netherlands-based Hiber in exchange for the issuance of new Astrocast shares, representing 16.5% of Astrocast’s share capital, calculated prior to its previously announced public offering on Euronext Growth Paris, which is scheduled to take place this year.
Hiber’s shareholders also agreed to invest €10.45 million (about $11.2 million U.S.) in Astrocast’s public offering, which would be the company’s second public offering after its initial stock offering on Euronext Growth Oslo last year. The completion of the deal is contingent upon the completion of Astrocast’s planned public offering, and the closing of the acquisition would occur immediately afterward, the companies said.
Hiber uses satellite-connected sensors to provide asset monitoring and tracking solutions to industrial customers in a variety of sectors through an as-a-service model. The deal should bring Astrocast cash flow and new customer relationships from current Hiber clients like ExxonMobil, Shell, Oil Search, NAM and ENI, all of whom are in the energy industry.
Astrocast CEO Fabien Jordan said of the acquisition, “We’re excited about the positive implications of the transaction for our investors. With this acquisition, Astrocast will gain access to customer segments that we have historically had little traction with. These segments complement Astrocast’s current sales effort. In addition, this acquisition will strengthen financing opportunities for Astrocast, benefiting investors, and accelerating the total fundraising plan for Astrocast.”
Hiber already uses Inmarsat’s L-band ELERA network to support its service, and Astrocast also uses the L-band spectrum for its satellites. Of the Inmarsat relationship, Astrocast said it has “no plans to replace Inmarsat completely, and intends to leverage this relationship to complement its offering.”
Among other recent IoT-related acquisitions, technology holding company SPYR Technologies last week announced a material definitive agreement to acquire GeoTraq, Inc., which makes mobile IoT modules for asset tracking and similar services, from biotech JanOne Inc.
GeoTraq’s initial round of products, which are targeting a market arrival of early 2023, include “entirely self-contained and ultra-small Mobile IoT modules for asset tracking, location-based services, and sensor modules for remote monitoring,” according to a statement on the acquisition. “The modules are plug-and-play and include turnkey connectivity [through low-power wide area networks] to cloud services via GeoTraq's proprietary cloud-based “WebTraq” platform.”
In another recent IoT buyout move, Ireland-based IoT fleet system operator CameraMatics announced the acquisition of Telematicus, a company that provides driver risk management technologies in partnership with the insurance industry.