Japan's SoftBank Corp is to invest €473 million in Irish tech firm Cubic Telecom for a 51% equity stake in the company in a deal that values Cubic at more than €900 million.
Cubic Telecom is headquartered in Dublin and makes internet-connected software for vehicles.
Since launching its connectivity platform in 2016, and 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.
As part of the deal, SoftBank and Cubic will form a strategic global partnership to develop the future of 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, and Daichi Nozaki, SoftBank's senior vice president responsible for its global business, as well as two other SoftBank appointees, will join Cubic Telecom’s board.
Three board seats will continue to be held by Cubic Telecom’s existing shareholders, including CARIAD (Volkswagen Group) and Qualcomm, and with the close of the investment, Cubic Telecom will become a consolidated subsidiary of SoftBank.
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"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," said Junichi Miyakawa, president and CEO of SoftBank.
Mr Napier said the announcement marks a significant milestone for the company.
"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," Mr Napier said.
"This, alongside the opportunity AI presents, will open up new collaborations and business models. The opportunities ahead of us are endless," he added.
The investment is subject to regulatory approvals in various jurisdictions and is expected to close in the first half of 2024.
Barry Napier was the first Endeavor Ireland entrepreneur.
Endeavor is a global not-for-profit organisation with a mission to support and accelerate high-impact entrepreneurs.
Its founding Chair in Ireland is U2's The Edge who today extended his congratulations to Mr Napier and the Cubic Telecom team.
"Barry’s story demonstrates that the secret to success is grounded in hard work, perseverance and a pay-it-forward attitude, which is what Endeavor is all about," The Edge said.
EY Ireland acted as joint sell side M&A lead advisor to Cubic Telecom on the majority investment by SoftBank Corporation - which represented the largest ever software deal in Ireland.
EY's Corporate Finance Partner Fergal McAleavey said that Cubic Telecom is a world leader in the field of software-defined connected vehicle solutions and the investment will power further global growth over the coming years.
"Barry Napier and his team are true trailblazers and innovators, and EY has been proud to work with them over many years, including as part of the EY Entrepreneur of the Year programme," Mr McAleavey said.
"This investment is also a really welcome boost for Irish M&A activity, particularly for our thriving indigenous software and technology sectors, and bodes well for a more active 2024 in terms of M&A, investments and access to capital for business," he added.
