Cambridge-based Cyan focuses on smart metering and lighting in emerging markets that have a requirement to reduce energy losses and improve revenue assurance. The company partners worldwide with utilities, system integrators and meter manufacturers to create global ecosystems that deliver significant benefits for energy providers, consumers and the environment.
Headquartered in Stockholm, Connode is a leading supplier of wireless communication products for Internet of Things (IoT). Connode provides a standards-based solution for developed markets in Europe and Asia including a £25 million software license and support contract for the UK smart meter rollout to provide the radio network for households where there is no cellular network coverage.
Following the closing of the acquisition, the Group will be known as CyanConnode, and will be a world leader in narrowband RF mesh networks that enable Omni IoT communications. Cyan’s Ultimesh will provide narrowband RF mesh networks, optimised for exceptional performance and total cost of ownership and Connode’s Panmesh will deliver standards-based IPv6 solutions, enabling rapid innovation for the implementation of third party applications. The enlarged Group will provide customers with the flexibility and choice required to converge networks for applications in smart cities and IoT, delivering increased customer value.
This complex cross-border transaction completed on 1 July 2016 following Cyan shareholder approval on 30 June 2016 and involved careful planning to ensure the simultaneous closing of:
- the acquisition by Cyan of Swedish-based Connode Holding AB and its subsidiary, Connode AB for £6.8 million, comprising both cash consideration and shares in Cyan;
- the acquisition by Connode AB of India-based Connode India Private Limited for up to US$1.46 million;
- the purchase of warranty and indemnity insurance cover in respect of the above acquisitions; and
- a £10.1 million placing and subscription to fund the cash consideration for the acquisitions and working capital needs of the enlarged Group.
The Taylor Vinters team, led by Corporate Partner, Ed Hooper, involved the expertise of the firm’s Corporate Finance, M&A and Commercial Technology specialist lawyers. The cross-border transaction also involved Taylor Vinters working closely with its partner law firm network in Sweden and India.
Ed Hooper, commented: "We have very much enjoyed working with the Cyan team on the successful completion of its transformational acquisition. The transaction is a great example of Cyan using its AIM quotation to best effect, issuing its shares to the Connode sellers to part-fund the acquisition and issuing further shares to institutional investors to raise monies to meet the working capital needs of the enlarged Group. We look forward to working on the integration process and being a part of Cyan’s continued growth-story.”
John Cronin, Executive Chairman at Cyan, commented: "It has been a pleasure working with Ed and the Taylor Vinters team during the past six months on this transaction. This has been a complex deal which has at times been challenging and has taken careful management to ensure the alignment and simultaneous closing of so many parts. Taylor Vinters have provided good, solid advice while being flexible in their thinking and always working with us to find the best solution for our company. We now look forward to integrating Connode into our group and working to make CyanConnode a world leader in narrowband RF mesh networks."
See also Cyan acquires Connode
About Taylor Vinters
Operating through our European hubs in London and Cambridge and Asia hub in Singapore, Taylor Vinters is a leading international law firm. It specialises in supporting innovative businesses and entrepreneurially minded people to make great things happen.
Taylor Vinters helps its clients manage risk, make informed decisions and leverage networks to achieve their personal and business goals by bringing together cross-disciplinary teams to address complex and multi-faceted issues and offer intelligent, joined-up solutions.
www.taylorvinters.com/
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Contact:
Anna Marsden, Media Relations at Social i Media: Anna.Marsden@Social-i-Media.co.uk or call 07984 638586.
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