Verizon To Buy Sensity Systems, Add LED To IoT Platform
Zacks Investment Research | Sep 13, 2016 05:42AM ET
U.S. telecom behemoth, Verizon Communications Inc. (NYSE:VZ) seems to be highly focused in strengthening its footprint in the Internet of Things (IoT) space. Recently, the company inked a deal to acquire Sensity Systems Inc., a small Internet of Things (IoT) start-up, based in Sunnyvale, CA. Sensity Systems provides smart city solutions, enabling light owners and businesses to switch to connected LED lights from older lighting systems.
The buyout is expected to close by the fourth quarter of 2016, subject to regulatory approvals and customary closing conditions. However, the financial terms of the deal have been kept under wraps.
Growth Prospects
The deal is expected to boost Verizon’s IoT business wherein the company plans to add the leading provider of IoT solutions for smart cities to its ThingSpace IoT platform. Thus, Sensity Systems will become part of Verizon's IoT business. SensitySystems’ specialization on conversions to LED lighting should improve the digital transformation of cities, universities and venues and provide smart LED lights for streets, airports, malls, and more. Sensity Systems has managed to reach upto 42 smart city installations worldwide.
The telecom giant has been eyeing new opportunities in the connected smart device arena and this acquisition reflects its shift from telephone poles to street lighting poles. Further, Verizon aims to replace ordinary lights with smart lights full of sensors through this buyout.
Verizon’s Latest Tie-Up
Verizon recently entered into IoT collaboration with Qualcomm Technologies, Inc., a subsidiary of Qualcomm Inc. (NASDAQ:QCOM) , the largest manufacturer of wireless chipsets. This partnership will see Verizon's IoT platform, ThingSpace, being integrated into Qualcomm Technologies' MDM9206 Category M LTE modem. Reports state that the ThingSpace IoT platform will be available for original equipment manufacturer (OEM) integration on MDM9206-based solutions at around the beginning of 2017.
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