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SoftBank Corp. to Invest $513 Million in Software Provider for Connected Vehicles

By Megumi Fujikawa

 

SoftBank Corp. is set to invest 473 million euros, equivalent to $513 million, in Cubic Telecom, a provider of software that helps vehicles link to computer networks and analyzes data from connected vehicles, it said Tuesday.

The mobile unit of Japanese technology investor SoftBank Group plans to take a 51% equity stake in Cubic Telecom, valuing the Dublin, Ireland-based company at more than EUR900 million.

Cubic Telecom said its customers include vehicle manufacturers that want to monitor, manage and update vehicle functions using mobile connections.

SoftBank Group, led by billionaire founder Masayoshi Son, has focused on investing in areas such as artificial intelligence and the internet of things. As of the end of September, SoftBank Group owned a 40.47% stake in SoftBank Corp.

SoftBank Corp.'s chief executive, Junichi Miyakawa, said the investment was in line with his company's "beyond Japan" growth initiative. Much of the company's current revenue comes from providing cellphone service to consumers and businesses in Japan.

McKinsey & Co. has estimated that about 95% of new vehicles sold globally will be connected by 2030.

The deal is expected to close in the first half of 2024 pending regulatory approvals, the companies said.

 

Write to Megumi Fujikawa at megumi.fujikawa@wsj.com

 

(END) Dow Jones Newswires

December 05, 2023 02:14 ET (07:14 GMT)

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