Solbright, M2M Spectrum merge to create Iota Communications Inc.

Two providers of Internet of Things (IoT), Newark-based Solbright Group and M2M Spectrum Networks, have merged, the pair announced Tuesday.

Under terms of the deal, Spectrum, the majority owner of M2M, will convert a $5 million investment into Solbright stock at $1 per share. Solbright will acquire all of M2M in a share exchange in which approximately 143.27 million shares of stock will be issued to equity owners of M2M.

The deal is expected to close in September.

The merger will create the first publicly-traded, pure-play, IoT network operations company in the U.S., they said.

The new company will be renamed to Iota Communications Inc.

“The more we understood Solbright’s resources, the more we realized that a complete integration of the two companies would have the potential to create significant value for both customers and shareholders,” Barclay Knapp, Iota co-founder and CEO, said. “Our plug-and-play IoT network access system, licensed radio frequencies, and customer applications, coupled with Solbright’s superior ‘back-end’ analytical capabilities, will provide a comprehensive end-to-end platform that we believe is unmatched in today’s IoT industry.  We anticipate that becoming the country’s first publicly-traded, pure-play IoT network operating company will provide us with significant competitive advantages as we accelerate Iota’s strategic development.”

Iota will be led by Knapp as chairman and CEO, and Terrence DeFranco as president and chief financial officer. Knapp and DeFranco will be the first members of the board of directors.

“Our partnership with Iota revealed a tremendous opportunity for us to put the companies together to drive value for our shareholders and customers,” said DeFranco. “This transaction is potentially a catalyst to place us years ahead in terms of our existing business in serving commercial and industrial facilities managers while adding significant value as a full service, turn-key IoT service provider in multiple verticals. In all, we believe this deal puts us at the forefront in the industry and we could not be more excited to be a part of such a dynamic and explosive opportunity.”

M2M, with offices in New Hope, Pennsylvania and Phoenix, Arizona,  provides solutions to create, connect and mangae communications for IoT.

Solbright, with its other office in Charleston, South Carolina, is an industrial automation and energy management company providing IoT solutions.

Ladenburg Thalmann & Co. Inc. acted as the advisor and Morgan, Lewis & Bockius LLP acted as legal counsel to M2M. Crone Law Group acted as legal counsel to Solbright.