SoftBank is set to invest approximately 473 million EUR for a 51 percent equity stake in Cubic Telecom, valuing the company at over 900 million EUR.
Cubic Telecom, a provider of connectivity solutions to automotive, transportation, and agriculture OEMs, is strategically positioned in an era where McKinsey & Company forecasts 95 percent of new global vehicles to be connected by 2030. The surge in connected car use cases is projected to deliver annual incremental value of 250 billion USD to 400 billion USD for the ecosystem, and Cubic Telecom stands poised to secure a significant share in this rapidly expanding market.
Barry Napier will continue as CEO and Board Member of Cubic Telecom, while SoftBank’s Senior Vice President, Daichi Nozaki, along with two other SoftBank appointees, will join Cubic Telecom’s Board. With three Board seats retained by Cubic Telecom’s existing shareholders, including CARIAD (Volkswagen Group) and Qualcomm, the investment positions Cubic Telecom as a consolidated subsidiary of SoftBank.
Cubic Telecom’s Platform for Application & Connectivity Enablement (PACE) represents a pivotal shift toward software-defined solutions, enabling OEMs to oversee, manage, and update vehicles or devices globally in real-time via mobile connectivity. This empowers vehicles to conform to regional requirements while adhering to diverse regulatory mandates. The platform facilitates over-the-air updates throughout a vehicle’s lifecycle, enhancing performance, safety, comfort, and overall user experience.
Currently connecting more than 17 million vehicles across 190 countries and regions, with a monthly addition of 450,000 new vehicles, Cubic Telecom’s exponential growth trajectory is projected to surge over the next five years, buoyed by agreements with over 90 mobile network operators.
This collaboration positions SoftBank to expand its IoT footprint into the connected car and software-defined vehicle markets, while Cubic Telecom gains access to new sales channels, bolstered by SoftBank’s extensive customer base in Japan and the Asia-Pacific region.
The investment, anticipated to close in the first half of 2024, is subject to regulatory approvals and customary closing conditions. The alliance seeks to explore synergies, develop novel services, and embrace emerging technologies like cellular vehicle-to-everything (C-V2X) connectivity, reaffirming its commitment to shaping the future of connected vehicles and IoT innovation.