Today’s announcement of Kore Telematics acquisition of Raco Wireless has the potential to create the most dynamic MVNO in the M2M/IoT market. Once the M&A is complete, Kore will have the largest number of cellular connections for an MVNO in the U.S. The M&A will give the company the size and scale it needs for accelerated growth and operational efficiencies. Furthermore, it will give the company the foundation it needs to be a major player in other geographies of the world. Below is a short-list of what Compass Intelligence views as key impacts to this M&A:
- Increased growth in markets outside of the U.S., such as Europe and Asia
- Strong leadership with varied skills across the wireless industry
- Leverage to negotiate better deals with carriers globally
- Development of innovative solutions
- Vertical market expertise from both companies will create synergies across various sectors
Some might wonder if the combined company will be in direct competition with carriers. Compass Intelligence sees Kore acting as an extension of the carriers, thus becoming a trusted partner. This will also allow carriers to tap into vertical market expertise where they may have gaps. The mind-share that the combined company brings to the table will help set it apart from other MVNO’s.
It’s no secret that the U.S. market is growing rapidly in the M2M market, it is expected that some of the best practices learned will be able to help grow the European and Asian market as well. This will be crucial because we see carriers in other regions of the world struggling with M2M such as Latin America. Raco is experiencing success in the region and their best practices are expected to be replicated around the world.
If we step back and evaluate the M2M market as a chess board, we can see that several companies are positioning themselves to be strong players on the global stage. For example, PTC has made major acquisitions, AT&T and Verizon have the foundation in place to compete globally and now Kore is in a solid position.
“What’s next”?, is what people are asking that observe the M2M market. Compass Intelligence believes this is the tip of the iceberg. We expect this acquisition will spur more M&A activity because this is an industry nobody wants to be on the outside looking in. The following chart highlights M&A activity is picking up. We believe the moves that will be made over the next 9 months will dictate the winners and losers in the M2M/IoT market.
Related Reports
- Q3 2014 Consumer Survey: Use of Security in the Home
- US M2M Master Cellular Connections and Revenue Forecasts
- Smart Factories: Changing Dynamics of Industrial Manufacturing and its Impact on M2M & IoT
- Consumer M2M/IoT Solutions: A Survey of Connected Home Users
- Growth Trends in the Connected Home Market: Connecting all Devices in the Home for Centralized Management & Control
- Insiders View on Connected Vehicles: Connected Vehicle Market Primed for Robust Growth
- Consumer Survey and Analysis: M2M Survey for mHealth
- mHealth Market Analysis: Opportunities and Evolving Ecosystem
- 4Q 2013 Hot Topics - M2M
- Remote Monitoring & Control: Tracking and Protection Heavy Equipment Assets with M2M
- Usage-based Insurance: Saving Money by Helping Modify Driving Behavior
- The Smart Home: Revolutionizing Consumer Lifestyles with the Internet of Things
Keith Robinson is the Director for M2M/IoT at Compass Intelligence. With over 20 years experience in a wide range of M2M applications (healthcare, energy, automotive, security, industrial automation, building automation, etc.), Keith brings a unique perspective to M2M and IoT. Click here for Compass Intelligence's coverage of M2M & IoT.
