Prodea Systems announced this week that it has acquired Arrayent to form a carrier-grade IoT services platform. The combined company delivers a proven suite of managed IoT services with unprecedented scale, speed, and reliability.
The two companies, which have been at the forefront of innovation in enterprise and consumer IoT, will combine teams and technologies to create an end-to-end solution that is ideal for data-intensive industries that need real-time performance monitoring, data intelligence and predictive analytics.
This comprehensive offering will deepen user engagement, create new revenue streams, differentiate products or services, and improve business efficiency, enabling both digital and business model transformation across each IoT vertical market—from consumer goods and healthcare, to smart cities, utilities and governments.
Based in Richardson, Texas, Prodea delivers carrier-grade IoT services being deployed by government agencies, healthcare providers, telcos and utilities in eight countries across four continents. The company developed the initial framework for deploying end-to-end managed IoT services and creating a portfolio of the IoT fundamental patents. The company has led the market in deploying its platform on a truly global scale, from the U.S. to India to South Africa.
Major institutional shareholders after the acquisition include DCM Ventures, Fortress Investment Group, Intel Capital, Mubadala Investment Company and Orix USA with over $200 million in capital invested to date. Terms of the acquisition were not disclosed.
“Just as we correctly predicted the evolution of communications networks by building the first globally deployed carrier-grade voice-over-IP platform, so too do we see a shift needed in the IoT industry,” said Dr. Anousheh Ansari, CEO and co-founder of Prodea Systems. “The IoT industry today is focused on connecting billions of devices and users, but it must evolve to enable meaningful services that drive business transformation and end-user value. Our combined companies have built two of the most innovative IoT platforms. By combining, we are poised to bring this vision to life and accelerate IoT deployments across different industries. In short, we are facilitating the evolution of the ‘Internet of Things’ to the ‘Internet of Services.’”
“We are excited about the end-to-end services and one-stop offering the combined company lets us bring to new and existing customers,” said Cyril Brignone, former CEO of Arrayent and new Chief Revenue Officer of Prodea. “With Arrayent’s leadership in consumer IoT and Prodea’s extensive and proven experience in smart city, surveillance, energy management, digital health, and Industry 4.0, together we provide an unparalleled offering with significant growth opportunity across key new markets.”
“IoT is one of the exponential technologies that will transform many industries and Prodea is now positioned to lead it past just connecting things,” said Dr. Peter H. Diamandis M.D., Prodea advisory board member, co-founder of Singularity University, and founder of the X-Prize foundation. “Prodea will be a major force in leading the IoT industry to the next chapter of its evolution.”
“Since its inception, Arrayent has been known for enabling leading manufacturers to deliver innovative consumer solutions,” said Jason Krikorian, Arrayent board member, General Partner of DCM Ventures and co-founder of Sling Media. “The combining of Arrayent and Prodea is game-changing and poised to shift the industry’s fixation from connectivity of things to enabling engaging new connected services of real value to real users.”
The management team of Arrayent and Prodea expect a rapid and complementary integration of technology, processes, resources and teams. Both companies are committed to delivering ongoing, uninterrupted services to their customers.
Raymond James Inc. acted as the financial adviser to Arrayent in this transaction.