Cubic Telecom, a Dublin-based start-up, has confirmed it will receive a strategic investment of €473 million ($513 million) from SoftBank Corp.
The Japanese investment giant will effectively gain a new subsidiary company in Cubic as the funding means it will acquire a 51% stake in its partner in what has been dubbed Ireland’s biggest tech deal.
The two entities had already been working in tandem, including in Japan, where Cubic Telecom has been integrating SoftBank’s wireless network to provide connectivity to connected cars.
The rise of Cubic since its launch in 2016 has been rapid, reflected in this deal which values the company at more than €900 million, as reported by RTÉ:
“Through agreements with more than 90 mobile network operators, the company currently connects more than 17 million vehicles in over 190 countries and regions, adding 450,000 new vehicles a month.”
Essentially, they provide a software-based network solution for vehicles and other devices to link up with the appropriate mobile networks wherever they are located, from one country to another.
“Endless” opportunities for Cubic Telecom
On Tuesday (Dec.5), a press release outlined the future intentions of the partnership:
‘With this investment, SoftBank and Cubic Telecom will form a strategic global partnership to pioneer the future of software-defined connected vehicles and other high-value Internet-of-Things (IoT) assets by harnessing the power of global connectivity platforms.’
It also shared a forecast that “95% of new vehicles sold globally will be connected by 2030, and connected car use cases alone could deliver $250 billion to $400 billion in annual incremental value for the ecosystem, with Cubic Telecom poised to capture a leading share of this rapidly growing market.”
As part of the deal, Barry Napier will remain as CEO of Cubic where he will be joined on the board by Daichi Nozaki, SoftBank’s Senior Vice President, and two other SoftBank representatives to be confirmed. Three seats at the top table will be occupied by Cubic Telecom’s existing shareholders, including CARIAD (Volkswagen Group) and Qualcomm.
Mr Napier remarked on the significant scope of further expansion for Cubic.
“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,” he said.
“This, alongside the opportunity AI presents, will open up new collaborations and business models. The opportunities ahead of us are endless.”
Featured Image: Cubic Telecom