Astrocast Acquires Hiber in IoT Market Consolidation
Satellite IoT network operator Astrocast announced a deal to acquire Hiber on Monday. Hiber, based in the Netherlands, provides IoT services using satellite connectivity. Astrocast cited a number of reasons for the deal, including expanding its distribution strategy by establishing a direct-to-end user sales channel. It also accelerates Astrocast’s original equipment manufacturer (OEM) strategy by increasing the development of additional satellite-enabled IoT devices.
Astrocast highlighted Hiber’s exposure in the oil and gas market. The company offers HiberHilo remote oil well monitoring solution servicing large customer Shell, and Hiber Easypulse asset tracking solution. ExxonMobil and Oil Search are also Hiber customers.
Hiber uses Inmarsat satellite capacity, and Astrocast said that agreement will give the company access to L-band spectrum over the Americas. Also, more than 50 IoT specialists from Hiber will join Astrocast.
Astrocast CEO Fabien Jordan said the deal gives the company access to customers it has had little traction with, complementing Astrocast sales.
“We’ve carefully monitored Hiber’s impressive shift in strategy over the past few years. Hiber is recognized as a powerful IoT scale-up within the market. Hiber’s focus on satellite-enabled IoT solutions, innovation and production aligns with Astrocast’s strategic go-to-market priorities for 2022 and beyond,” Jordan said.
Astrocast shared terms of the deal that the company is acquiring all of Hiber’s shares in exchange for the issuance of new Astrocast shares, representing 16.5% of Astrocast’s share capital. Hiber’s shareholders also agreed to invest 10.45 million euros ($11.22 million) in Astrocast’s public offering.
The acquisition is conditioned on the completion of Astrocast’s public offering on Euronext Growth Paris and is expected to close immediately following the public offering.
This is another example of collaboration and consolidation in the satellite IoT area after Omnispace and Lacuna Space announced a collaboration in March to distribute a global, open standards-based IoT network. NSR analyst Alan Crisp recently told Via Satellite he expects some players to drop out of the market, along with consolidations. “Expect to see another one or two constellations [announced]. Probably more collaborations, like we saw between Omnispace and Lacuna,” he said.