Richardson, Texas-based Prodea will create managed Internet of Things services that absorb data from IoT sensors and process it into useful data for enterprise and consumer applications.
The combined company will create an end-to-end solution that is ideal for data-intensive industries that need real-time performance monitoring, data intelligence, and predictive analytics.
The companies say this 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 health care to smart cities, utilities, and governments.
Major institutional shareholders after the acquisition include DCM Ventures, Fortress Investment Group, Intel Capital, Mubadala Investment Company, and Orix USA. Both companies have raised more than $200 million, to date.
Redwood City, Calif.-based Arrayent has managed over 1.5 million connected consumer products, including major appliances, residential lighting, home access systems, HVAC/water controls, and small electrical devices.
“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, CEO and cofounder of Prodea Systems, in a statement. “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.
The management teams of Arrayent and Prodea say they will deliver ongoing, uninterrupted services to their customers.
“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, in a statement. “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.”