Staff reporter 15 May 2019
Vodacom has reached an agreement to acquire a majority stake in SA Internet of Things (IoT) startup IoT.nxt.
While neither Vodacom or IoT.nxt have disclosed the amount the telco paid to acquire a majority stake in the startup, it’s likely to be in the hundreds of millions of rands.
IoT.nxt startup has raised R120-million in two rounds in under four years, from Talent10, a Midrand-based asset management company which currently holds a 30% stake in the startup (though this was taken at a time when the startup was generating far lower revenue than it is now).
Vodacom said in a SENS announcement (opens as PDF) on Monday (13 May) that it had entered into an agreement to purchase a 51% equity interest in 10T Holdings and IoT.nxt BV. The transaction is subject to the approval of the Competition Commission, it said.
The telco said the deal will “significantly accelerate” Vodacom’s Internet of Things (IoT) strategy and transform its dedicated IoT business unit.
The Pretoria-based startup, which is led by co-founder and CEO Nico Steyn (pictured above) was founded in 2015, focuses on delivering innovative IoT software and hardware solutions.
IoT.nxt’s open platform network enables users of the platform to carry out rapid software development and integration.
In a statement yesterday Vodacom Group CEO Shameel Joosub said in addition to accelerating Vodacom’s IoT strategy, its investment in IoT.nxt brings a number of advantages to Vodacom’s existing IoT capability, including class-leading platform technology.
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