Talkpool: Investment in the fast growing market of IoT2017-11-27 10:18
Talkpool AG acquires 30% of the Gothenburg based Internet of Things company Talkpool AB which they previously owned 26% of the shares. Now Talkpool AG owns 55.6% of the shares in Talkpool AB. We consider that the acquisition of Talkpool AB will strengthen the Company’s position within Internet of Things, therefore we will look into our Base case. We will probably raise our Base case with a few SEK due to the increase in ownership of the Internet of Things company.
Talkpool AB develops and sells Internet of Things solutions mostly within utilities, industry and smart cities. Talkpool have implemented Internet of Things solutions in cities like Stockholm, Gothenburg and Malmö. Now the Gothenburg city, thanks to Talkpool AB Internet of Things solution, are able to see the changes in climate. Historically, most of the project has been about showing proof of concept in minor pilot projects. However, lately Talkpool AB is moving towards delivering commercial solutions to paying clients.
In the initiating coverage report we focused on a couple of catalysts that could drive the share going forward. With the latest acquisition of LCC, Talkpool now have reached their criterias’ for phase 1, which is expanding the existing business area Telecommunication Network Services within profitable niches. Thanks to the acquisition of the Internet of things company Talkpool AB, the Company now confirms that they have switched focus from phase 1 to phase 2 in their strategy. Phase 2 consists of using the cash generated by the business segment of Telecommunication Network Service to invest in-house solutions in the area of Internet of Things, both through in-house develop solution as of further acquisition within Internet of Things.
The biggest share owner of Talkpool AB is Stefan Lindgren, who beyond the ownership of Talkpool AB also is a board member as well as he is the current CTO of Talkpool AG.
We consider that the acquisition of Talkpool AB will strengthen the Company’s position within Internet of Things, therefore we will look into our Base case. We will probably raise our Base case with a few SEK due to the increase in ownership of the Internet of Things company. A greater follow up will come after the third quarter report.
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