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Thursday
Oct082015

Ayla Networks – Company Profile

 

Company Background 

Ayla Networks markets itself as “the next phase of the internet of things.” Ayla Networks is believed by many to provide the industry’s first Agile IoT Platform.  This platform accelerates the development, support, and constant enhancements of connected devices for the IoT.  Ayla’s software fabric is offered to users as a cloud Platform-as-a-Service (PaaS).  The company was co-founded by David Friedman (CEO), Adrian Caceres (CTO), Phillip Change (VP), and Tom Lee.

 

 

Ayla’s IoT Cloud Platform

  • Cloud-based application enablement platform that is simple and cost efficient for OEMs to connect any device to the internet. 
  • Software helps to create an adaptive fabric to speed up the support and development of smart, interactive product solutions, from to devices to cloud to applications.

Benefits

  • Reduces risk
  • Decreases costs
  • Scalable
  • Differentiates
  • Accelerates
  • Brings customer value
  • Enables agility

Key Capabilities

  • Application empowerment
  • Secure connectivity
  • Operational scale
  • IoT data intelligence

Benefits for Manufacturers

Allows manufacturers to:

  • Own the data
  • Get up and running quickly
  • Agility and configurability

Markets Served

  • Connected Self
  • Connected Building
  • Connected Home
  • Connected Industry
  • Retailers & Service Providers

Investors

  • SAIF Partners – private equity firm
  • Cisco Investments – strategic investor
  • International Finance Corporation – member of the World Bank Group
  • Voyager Capital – venture capital firm
  • Crosslink Capital – venture capital firm
  • SJF Ventures – growth equity fund

News

Recently, Ayla Networks announced that it will supply its IoT technology to Innr Lighting, a startup company located in the Netherlands that focuses on smart and connected residential lighting. 

Friday
Sep182015

Altice Pays $17.7b for Cablevision, Doubles Down on U.S. Cable

French telecom firm Altice announced on Thursday, September 17th that it had agreed to acquire Cablevision Systems Corporation (NYSE:CVC) at a headline price of $17.7b, or $34.90 per share.  The deal comes on the heels of Altice’s May purchase of Suddenlink for $9.1b, which marked its entrance into the U.S. cable market.  The combination of Suddenlink and Cablevision represents the 4th largest cable operator in the U.S. and continues the trend of large-scale M&A amongst U.S. cable operators.

Valuation Analysis and Deal Metrics

Transaction Facts

  • BC Partners and CPP Investment Board, from which Altice acquired its 70 percent stake in Suddenlink,  have an option to participate for up to 30 percent of the equity of Cablevision
  • $900m in annual synergies anticipated  
  • Expected close 3Q16-4Q16

Strategic Considerations

  • Provides greater scale to realize cost synergies across Suddenlink and Cablevision
  • 65 percent take rate of triple play services drives industry-leading ARPU of $155
  • Highly competitive network that is 100 percent digital, offering triple play--video, broadband and VoIP—throughout service area

JSICA’s Take

After Altice scooped up Suddenlink in May, we indicated that more U.S. cable deals were on the horizon for the acquisitive French telecom giant.  Cablevision, an oft-rumored takeover target in recent years, was a logical target.  At multiples of 2.8x trailing revenue and 6.9x pro forma EBITDA, Cablevision was less expensive than Suddenlink (3.9x revenue/8.1 pro forma EBITDA)—the discount largely attributable to Cablevision’s inability to deliver meaningful revenue and EBITDA growth over the past five years.

Existing high penetration rates and strong in footprint competition from Verizon will make it challenging for Altice to accelerate Cablevision’s top line growth, but founder Patrick Drahi is confident that between network modernization, the streamlining of operations and consolidation of management, there is ample room for cost savings--$900m worth to be exact.

The deal marks continued consolidation of U.S. cable/broadband providers in 2015, particularly amongst mid-sized operators.  Deal multiples averaging a lofty 3.6x revenue and 8.0x pro forma cash flow could entice the remaining regional/mid=sized cablecos to sell.  And with Altice looking to increase its overall revenue mix to 50 percent from its U.S. operations, there is at least one motivated buyer in the market. 

Friday
Sep042015

Momentum Telecom Announces Acquisition of Alteva

Introduction

On Wednesday, September 3rd, Momentum Telecom announced its acquisition of Alteva (NYSE: ALTV).  Alteva’s main focus today has been on cloud-based UC on a BroadSoft platform. 

Transaction Facts

  • Transaction is for approximately $28.7 million.
  • As a result of the transaction, Alteva shareholders will receive $4.70 per common share, once the deal closes, which is expected to be during Q4 2015. 
  • Transaction will give Momentum additional scale.

Strategic Considerations

  • Deal increases Momentum’s user count to over 250,000.
  • Improves the company’s marketing and sales initiatives.
  • Delivers value in the form of support to existing and new customers.
  • Bill Fox, President & CEO of Momentum commented on the transaction saying “The combined strengths of these two companies further enhance Momentum Telecom as a market leader in the VoIP and unified communications industry.”

JSICA’s Take

  • Adds to the consolidation that has been occurring in the VoIP and unified communications industry.
  • TTM Revenue as of June 30, 2015 was approximately $30.39m, which implies a revenue multiple of 0.9x.
  • Cash flows from operations have been negative for several years. Alteva’s TTM OIBDA for the quarter ending June 30, 2015 was ($2.97 million).
  • Alteva was formally Warwick Valley Telephone Company (WVTC)
  • The transaction represents a 31% premium to Alteva’s closing share price on 9/2/2015.

Alteva Timeline

Friday
Aug282015

Canopy – Company Profile

Introduction

Canopy brands itself as the “open cloud for the Internet of Things (IoT).”  Canopy’s cloud service helps to simplify the IoT cloud by using an open source cloud platform as a relay between IoT applications and devices.  One of the benefits of Canopy is it creates quick development of IoT solutions for the industrial, consumer, and commercial markets.  Canopy is the solutions provider for Simple Things (simplethings.io) – Silicon Valley’s premier IoT software studio. 

2 Main Features of Canopy’s Software

  • Cloud Notifications
    • Enables messages to be sent to the user from within firmware. 
    • In-app notifications, SMS, or email are all the available contact methods.
  • Cloud Variables
    • Simplify the process of adding cloud-based monitoring and remote control to user devices.

Open Source Components

  • Application Development Kit
  • Device Manager
  • Canopy Cloud Service
  • Embedded Development Kit

Advantages of Canopy

  • Free or paid hosting.
  • 100% open source.
  • Canopy Cloud Service can be run anywhere.
  • Variables that are tracked and monitored by the server.
  • Cloud Variables are stored in the cloud and accessed through web-based protocols.
  • Platform is based on Websocket and RESTful HTTP protocols.
Monday
Aug242015

RacoWireless – Company Profile

Introduction

RacoWireless’s goal is to make it easy for companies to develop, deploy and manage Machine-to-Machine (M2M) solutions.  RacoWireless is a KORE Wireless Group Company.

Products – M2M Platform

RacoWireless prides itself with trying to make the Internet of Things (IoT) M2M network connectivity as easy as possible.  The company’s portfolio of products are deployed amongst many companies of all sizes. 

  • Omega Management Suite
    • Cloud-based dashboard that enables RacoWireless’s partners custom control of their connected solutions.
    • Product offers tools to its users that assists with global device management.
  • Position Logic
    • Platform that provides a singular location for on-demand, scalable tools to track and manage assets.
    • Integrates nearly every signaling device into RacoWireless’s scalable, cloud-based hub where devices can be monitored in real time from anywhere around the world.
    • Enables partners to choose options based upon their GPS tracking needs.
  • Omega DevCloud
    • Marketed by the company as “the new standard for IoT development.”
    • Designed to be universal in regards to hardware.
    • Simplifies IoT application development.

Industries Being Addressed

  • Connected Car
  • Smart Cities
  • Asset Tracking
  • Connected Home
  • Connected Healthcare
  • Fleet/Telematics
  • Smart Grids
  • M2M Monitoring and Control
  • Point of Sale
  • Digital Signage
  • Personal Tracking

Services – M2M Solutions

  • 2G Support
  • Carrier Device Certification
  • M2M Hardware Development
  • Omega Call Center
  • Consulting
  • Wireless Virtual LAN
  • SMS Gateway
  • Marketing Services

Connectivity

  • GSM/CDMA/Satellite
    • Carrier agreements with AT&T, T-Mobile, Sprint, Telefonica, EE and satellite provider, Inmarsat.
  • Flexible Technology
    • Flexible connectivity for users of 2G, 3G, or 4G connectivity.
  • Solid Infrastructure
    • 100% of network infrastructure is hosted in SSAE 16 compliant data centers.
  • Always-On
    • Provide specialized technology and support to ensure applications are operating effectively.