Home Knowledge William Fry Advises Softbank on Strategic Investment in Cubic Telecom

William Fry Advises Softbank on Strategic Investment in Cubic Telecom

We are delighted to have advised SoftBank on its investment of approximately €473m in Cubic Telecom Limited for a 51% equity stake in the company at a valuation of over €900m.

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. With this investment, Softbank and Cubic Telecom will form a strategic partnership to pioneer the future of software-defined connected vehicles and high-value Internet-of-Things (IoT) assets.

Softbank is a telecommunications and IT operator headquartered in Tokyo. SoftBank has 40 million mobile subscribers in Japan and, through its group companies, 60 million smartphone payment users, 85 million online media users and 96 million communication app users (in each case as of 8 November 2023) and had consolidated revenues of ¥5.9 trillion in the fiscal year ending 31 March 2023.

Cubic Telecom is a global provider of connectivity solutions to automotive, transportation and agriculture original equipment manufacturers. It has grown rapidly since launching its industry-first 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, which is expected to increase exponentially over the next 5 years.

Acting alongside Herbert Smith Freehills in advising Softbank on this transaction, the William Fry team was led by Corporate Partner Brian Butterwick and Consultant Bryan Bourke with assistance from Gavin White, Lulu Trainor and Trish McGrath (all Corporate), Leo Moore, Barry Scannell and Roisín Culligan (all Technology), Jeff Greene, Louise Harrison and Oisín O’Callaghan (all Employment & Benefits), Jane Barrett (Pensions), Brian Duffy (Tax), Helena Ryan and Kate Loftus (Real Estate) and Cormac Little and Sheila Tormey  (both Competition & Regulatory).

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