RAK
04/04/2016 11:18
GENERAL
PRICE SENSITIVE
REL: 1118 HRS Rakon Limited
GENERAL: RAK: Rakon investment drives new trans-Tasman IoT network
4 APRIL 2016
RAKON LIMITED (NZX: RAK)
Rakon investment drives new trans-Tasman IoT network
NZSX-listed technology company Rakon Limited ("Rakon") is set to play a
central part in the development of an Internet of Things (IoT) network in New
Zealand and Australia.
Rakon today announced it had invested a further AUD4.2 million in
Australian-headquartered company Thinxtra Pty Limited ("Thinxtra"), making a
total of AUD5.8 million invested over the past four months in return for a
63.8% shareholding (which would adjust to 47.7% in the event Thinxtra's
founding shareholders chose to exercise all their outstanding options).
Thinxtra was set up to develop Australia's first dedicated IoT network, using
LPWAN (low-power wide area network)* technology developed by French company
SIGFOX. With Rakon's involvement Thinxtra would now expand its operation to
include New Zealand.
Rakon Managing Director Brent Robinson said Rakon had considered working with
SIGFOX directly and developing the New Zealand network itself. However,
Thinxtra's technical expertise, and the ability to tap into the preparatory
work Thinxtra had done across the Tasman, made a collaborative approach the
natural choice.
"If the Thinxtra team hadn't existed, we would have had to invent them," Mr
Robinson said.
"Their knowledge of the IoT, and the strong relationship they have with
SIGFOX, who are the world leaders in this field, is a great fit with Rakon's
commitment to innovation in communications and our knowledge of the local
market."
Thinxtra Chief Executive Officer Loic Barancourt said Rakon was the perfect
partner.
"Our priority over the past few months was to secure the additional capital
necessary to develop the Australian network," he said.
"In Rakon, we have aligned ourselves with a partner that brings a lot more
than that - in particular, complementary knowledge of and expertise in the
telecommunications and global positioning industries," said Mr Barancourt.
"We also now have the opportunity to develop a trans-Tasman network, which
offers significant advantages to current and future IoT users."
Mr Barancourt said Thinxtra was currently carrying out trials in Australia.
Work on installing the New Zealand network was expected to be under way by
June and the company was aiming to reach 85 percent of all Australians and
New Zealanders within the next 18 months.
Rakon retains an option for further investment of AUD3.0 million based on
specific milestones being achieved.
Brent Robinson
Managing Director & Chief Executive Officer
The management of Rakon, Thinxtra and SIGFOX will today hold a presentation
on today's announcement. The attached material supports the presentation
being made:
- SIGFOX Press Release
- Rakon-Thinxtra-SIGFOX Presentation
- Rakon-Thinxtra-SIGFOX - your questions answered
-ends-
Media Enquirie
Louise Howe (Media Liaison)
021 206 0985
www.rakon.com
End CA:00280286 For:RAK Type:GENERAL Time:2016-04-04 11:18:34
