Astrocast acquires Hiber as part of IoT market consolidation
Satellite IoT network operator Astroscattering announced an agreement to acquire Hibernate In 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 sales channel to end users. It also accelerates Astrocast’s original equipment manufacturer (OEM) strategy by increasing the development of other satellite-enabled IoT devices.
Astrocast highlighted Hiber’s exposure to the oil and gas market. The company offers HiberHilo remote oil well monitoring solution for large client Shell and Hiber Easypulse asset tracking solution. ExxonMobil and Oil Search are also Hiber customers.
Hiber uses Inmarsat satellite capacity, and Astrocast said the deal will give the company access to L-band spectrum over the Americas. Additionally, 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, supplementing Astrocast’s sales.
“We have closely followed Hiber’s impressive shift in strategy over the past few years. Hiber is recognized as a powerful IoT scale-up in the market. Hiber’s focus on satellite-based IoT solutions, innovation and production aligns with Astrocast’s strategic go-to-market priorities for 2022 and beyond,” said Jordan.
Astrocast has shared the terms of the agreement under which the company acquires all shares of Hiber in exchange for the issuance of new shares of Astrocast, representing 16.5% of Astrocast’s share capital. Hiber shareholders have also agreed to invest €10.45 million ($11.22 million) in Astrocast’s public offering.
The acquisition is subject to the completion of Astrocast’s public offer on Euronext Growth Paris and should be finalized immediately after the public offer.
This is another example of collaboration and consolidation in the field of satellite IoT after Omnispace and Lacuna Space announced a collaboration in March to deliver a global IoT network based on open standards. NSR analyst Alan Crisp recently told Via Satellite that he expects some players to exit the market, as well as consolidations. “Expect to see one or two more constellations [announced]. Probably more collaborations, like we saw between Omnispace and Lacuna,” he said.