Solbright and M2M Spectrum Networks merge
August 2, 2018
Solbright and M2M Spectrum Networks are merging to create Iota Communications, said to be the first publicly-traded, pure-play, fully-featured IoT network operating company in the USA.
Solbright Group is an industrial AI, machine learning and energy management company providing IoT for commercial and industrial facilities. M2M Spectrum Networks is a dedicated IoT network access company.
The merger follows Solbright and M2M's June partnership announcement, offering a smart facilities line of products and services, called SF Net, which includes security, asset tracking, facilities management, energy management and predictive maintenance.
The combined company, to be renamed Iota Communications, will add Iota's healthcare, logistics, agricultural and geo-marketing base to Solbright's smart facilities and industrial offerings, bringing together M2M's end-to-end network connectivity employing FCC-licensed radio spectrum; a robust IoT cloud platform buttressed with Bright AI from Solbright; and a combined suite of applications for IoT verticals.
"The more we understood Solbright's resources, the more we realised that a complete integration of the two companies would have the potential to create significant value for both customers and shareholders," said Iota co-founder and CEO Barclay Knapp. "Our plug-and-play IoT network access system, licensed radio frequencies, and customer applications, coupled with Solbright's superior back-end analytical capabilities, will provide a comprehensive end-to-end platform that we believe is unmatched in today's IoT industry. We anticipate that becoming the country's first publicly-traded, pure-play IoT network operating company will provide us with significant competitive advantages as we accelerate Iota's strategic development."
Solbright chairman and CEO Terrence DeFranco added: "Our partnership with Iota revealed a tremendous opportunity for us to put the companies together to drive value for our shareholders and customers. This transaction is potentially a catalyst to place us years ahead in terms of our existing business in serving commercial and industrial facilities managers while adding significant value as a full service, turnkey IoT service provider in multiple verticals. In all, we believe this deal puts us at the forefront in the industry and we could not be more excited to be a part of such a dynamic and explosive opportunity."
M2M, with offices in Pennsylvania and Arizona, provides products for creating, connecting and managing communications for IoT. The company created the first dedicated, national, carrier-grade wireless network system to standardise and simplify IoT network access for end-users. It employs FCC licensed radio spectrum to ensure quality and reliability.
M2M's network system connects standard Bluetooth Low Energy and wifi-based beacons and sensors to its cloud platform data store, from which any end-user application can access location, tracking or sensor-based data for inclusion into end-user management systems.
Solbright, with offices in New Jersey and South Carolina, is an industrial automation and energy management company providing IoT services that help commercial and industrial facilities increase efficiency and reduce cost. It delivers technology for building and machine automation and energy conservation that complement its energy conservation services such as LED lighting retrofits, HVAC system retrofits and solar engineering, procurement and construction services.
Spectrum Networks Group, the majority owner of M2M, will convert its previously announced $5m investment into Solbright common stock at $1 per share. Solbright will acquire 100 per cent of M2M in accordance with a share exchange in which approximately 143.27 million shares of common stock will be issued to the equity owners of M2M plus warrants to acquire an additional approximate 11.99 million shares of common stock. M2M is also bringing additional funding capability over the next 18 months from its Spectrum Partners Program, which Iota intends to use going forward.
The parties expect the closing to take place in early September 2018.