SoftBank will be investing approximately €473 million in Cubic Telecom for a 51.0% equity stake, as per the company’s announcement last week. The company has been valued at over 900 million EUR. 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.
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, and 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.
By collaborating with SoftBank, which has an extensive customer base in Japan and other Asia-Pacific countries and regions, Cubic Telecom will gain access to new sales channels to further build on its market leadership position. SoftBank and Cubic Telecom will also explore ways to generate synergies and develop new services, such as utilizing satellite and stratospheric-based Non-Terrestrial Network (NTN)-based solutions that provide seamless connectivity to vehicles and IoT devices in areas that cannot be reached by traditional ground-based networks.
The investment is subject to regulatory approvals in various jurisdictions, and other customary closing conditions, and is expected to close in the first half of 2024.
Barry Napier, CEO, Cubic Telecom
Today’s announcement marks a significant milestone for our team and stakeholders, and we’re excited to partner with SoftBank to pioneer the future of software-defined connectivity. 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. This, alongside the opportunity AI presents, will open up new collaborations and business models. The opportunities ahead of us are endless.
Junichi Miyakawa, President & CEO, SoftBank
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. With its global leadership position, we are convinced Cubic Telecom is the best partner for this opportunity, and we look forward to building connectivity platforms for next-generation social infrastructure.