Cyan acquires Connode, creating world leader in narrowband mesh networks for IoT
Cyan (AIM:CYAN.L) – the integrated system and software design company delivering mesh based flexible wireless solutions for utility metering and lighting control is pleased to announce it has acquired Stockholm headquartered Connode Holding AB for £6.8m*, creating a world leader in narrowband mesh networks for smart metering and IoT. Cyan shareholders approved the acquisition at its general meeting on 30 June 2016.
Connode is a well-established supplier of wireless communications to the UK Smart Metering Implementation Programme (SMIP) – one of the world’s largest smart metering roll-outs. The potential value of the SMIP rollout to the combined company is approximately £37m in software licence and support fees, over the rollout and support lifecycle. The combined Cyan Connode business will support multi-application networks and enable communication with any device, including: gas, water and electricity meters, lighting and traffic lights.
John Cronin, Executive Chairman of Cyan commented: “The acquisition of Connode is transformational for Cyan, allowing us to accelerate our product roadmap over various carriers, including cellular, PLC, WiFi and Bluetooth – through Connode’s open standards-based IPv6 platform. The combined company will provide customers with a wider portfolio, allowing greater flexibility and rapid innovation in the development of converged networks for applications in smart cities and IoT.”
Bjorn Lindblom, Chief Executive Officer of Connode, commented: “Joining Cyan is a significant step for our employees and customers – creating a market leader in dedicated IoT communications networks. Together, we have an unparalleled, complimentary service offering, with an international presence and crucially shared values.”
Cyan currently focusses on smart metering and lighting in emerging markets, such as India, which have a pressing requirement to reduce energy losses and improve revenue assurance. As well as enhancing Cyan’s presence in India, the Connode acquisition allows Cyan to expand its geographic reach into developed markets such as Europe and Asia.
*(£6.8 million, consisting of £4.3 million in cash and £2.5 million in equity)