SoftBank Invests in Dublin Based Cubic Telecom

SoftBank Corp., a Tokyo-based telecommunications and IT operator, and Dublin-based Cubic Telecom Ltd. (“Cubic Telecom”), a provider of connected vehicle 1 solutions, have announced that the two parties have signed a final agreement. Under the agreement, SoftBank will invest approximately 473 million euros in Cubic Telecom to acquire 51.0% of the company's equity.

The latter is valued at more than 900 million euros. Through this investment, SoftBank and Cubic Telecom will form a global strategic partnership to leverage the power of a global connectivity platform to pioneer a future of software-defined connected vehicles and other high-value Internet of Things (IoT) assets.

Cubic Telecom is a leading global provider of connectivity solutions to automotive, transportation and agricultural original equipment manufacturers (OEMs). According to McKinsey & Company, 95% of new cars sold globally will be connected by 2030, and connected car use cases alone could bring $250 billion to $400 billion in annual incremental value to the ecosystem. Cubic Telecom is expected to capture a leading share in this rapidly growing market.

Following the investment, Barry Napier will continue to lead Cubic Telecom as CEO and member of the Board of Directors. Daichi Nozaki, SoftBank's senior vice president for global operations, and two other SoftBank appointees will join Cubic Telecom's board of directors. Three seats on Cubic Telecom's board of directors will continue to be held by existing Cubic Telecom shareholders, including CARIAD (Volkswagen Group) and Qualcomm. After the investment is completed, Cubic Telecom will become a consolidated subsidiary of SoftBank.

Cubic Telecom's Platform for Application and Connectivity Enablement (PACE) is a testament to the shift to software-defined solutions and away from traditional hardware. The platform allows OEMs to monitor, manage and update all aspects of a vehicle or equipment in real-time, globally and via mobile connectivity. This means the vehicle can be customized to a country or region’s requirements while complying with different regulations. Vehicles and devices can receive new features and functionality updates over-the-air (OTA) throughout their lifecycle, improving performance, safety, comfort and value, ensuring the best user experience. Cubic Telecom has grown rapidly since launching its industry-first connectivity platform in 2016. Through agreements with more than 90 mobile network operators (MNOs), the company now connects more than 17 million vehicles in more than 190 countries and regions, with each There are 450,000 new vehicles added every month, and exponential growth is expected in the next five years.

Junichi Miyakawa, President and CEO of SoftBank Corp., commented: "In line with our 'Out of Japan' strategic growth plan, we are very excited to partner with Cubic Telecom to fully enter the fast-growing high-value IoT asset connectivity market. With its global With our leading position, we are convinced that Cubic Telecom is the best partner to seize this opportunity, and we look forward to working together to build a connectivity platform for the next generation of social infrastructure."

Barry Napier, CEO of Cubic Telecom, said: “Today’s announcement is a significant milestone for our team and stakeholders, and we are excited to partner with SoftBank to pioneer the future of software-defined connectivity. With a focus on software rather than hardware, , manufacturers can add new features wirelessly to increase the value of a vehicle or device, thereby improving safety, comfort and performance. This, along with the opportunities brought by artificial intelligence, will open up new collaboration and business models. The opportunities we face in the future are endless.”

Cubic Telecom enables major global automotive, transportation and agricultural OEMs to accelerate their digital transformation and better leverage software-defined technologies. The company is also developing cutting-edge services leveraging the powerful analytics capabilities of its platform. As cellular vehicle-to-everything (C-V2X) connectivity technology continues to evolve, SoftBank’s collaboration with Cubic Telecom will play a global leading role in developing new services and accelerating innovation.

While SoftBank has been providing global IoT connectivity services primarily in the Asia-Pacific market, the new strategic partnership with industry leader Cubic Telecom will enable SoftBank to fully enter the fast-growing IoT markets such as connected cars and software-defined vehicles. Gain new revenue opportunities. SoftBank has an extensive customer base in Japan and other Asia-Pacific countries and regions. By cooperating with SoftBank, Cubic Telecom will gain new sales channels and further consolidate its market leading position. SoftBank and Cubic Telecom will also explore ways to generate synergies and develop new services, such as leveraging satellite- and stratospheric-based non-terrestrial network (NTN) solutions to provide wireless connectivity to vehicles and IoT devices in areas not covered by traditional terrestrial networks. seam connection.

The investment is subject to regulatory approvals in each jurisdiction and other customary closing conditions, with the transaction expected to close in the first half of 2024.

Cubic Telecom was advised on this transaction by chief financial advisors Jefferies and EY Corporate Finance. Davis Polk LLP and Arthur Cox LLP are serving as legal counsel to Cubic Telecom. PJT Partners serves as SoftBank's lead financial advisor. Herbert Smith Freehills and William Fry served as legal counsel to SoftBank. PwC acted as financial, tax, human resources, cyber, privacy and purchase price allocation (PPA) advisor to SoftBank. KPMG Ireland and Trasna Corporate Finance also advised Cubic Telecom on the transaction.