Prodea acquires Arrayent to deliver IoT services
August 3, 2017
Texas-based IoT service company Prodea Systems has acquired Arrayent with the goal of forming a carrier-grade IoT services platform. The combined company aims to deliver a suite of managed IoT services.
The two companies will combine teams and technologies to create an end-to-end service for data-intensive industries that need real-time performance monitoring, data intelligence and predictive analytics. This offering aims to 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.
Major institutional shareholders after the acquisition include DCM Ventures, Fortress Investment Group, Intel Capital and Mubadala Investment with over $200m in capital invested to date. Terms of the acquisition were not disclosed.
With more than 70 consumer products connected and managed across 82 countries and five continents, Silicon Valley-based Arrayent claims to be the leading IoT platform chosen by global manufacturers of trusted mass-market brands. It has managed over 1.5 million connected consumer products including major appliances, residential lighting, home access systems, HVAC, water controls and small electrics.
“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 (pictured right), 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.”
Prodea provides carrier-grade IoT services being deployed by government agencies, healthcare providers, telcos and utilities in eight countries across four continents. Since 2006, Prodea has distinguished itself by developing a framework for deploying end-to-end managed IoT services and creating a portfolio of IoT patents. The company has deployed its platform on a global scale, from the USA to India to South Africa.
“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 Anousheh Ansari (pictured left), 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.”
The management teams of Arrayent and Prodea expect a rapid and complementary integration of technology, processes, resources and teams. Both companies are committed to delivering on-going, uninterrupted services to their customers.
“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 Peter Diamandis, 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.”
Jason Krikorian, Arrayent board member, general partner of DCM Ventures and co-founder of Sling Media, added: “Since its inception, Arrayent has been known for enabling leading manufacturers to deliver innovative consumer solutions. 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.”
Raymond James acted as the financial adviser to Arrayent in this transaction.
Prodea Systems was founded in 2006 and Arrayent in 2005.