Quest for scale brings IoT players Kore and Raco together

Kore Wireless will acquire RacoWireless, and more consolidation is on the way

Machine-to-machine communications, part of the fast-growing Internet of Things, is starting to look more like the large-scale industry it's expected to become.

On Tuesday, longtime M2M services company Kore Wireless Group said it would acquire RacoWireless, which sells software and cloud services designed to make M2M easy to roll out and use. The all-cash acquisition, for an undisclosed sum, is expected to close by the end of the year.

M2M technology has its roots in proprietary networks developed for specific industries, and it's still provided largely by small and medium-sized vendors. But M2M is now becoming part of the so-called Internet of Things, a broader set of networking and number-crunching systems that is expected to span wearables, home networks and mass-deployed sensors.

A bigger market calls for fewer and larger companies, and industry analysts expect a wave of consolidation. The products and services available for device activation, management, application development and other parts of the IoT puzzle are still too fragmented for most enterprises, analyst James Brehm of James Brehm & Associates said earlier this year. He thinks that is holding back the growth of the industry.

Investors also see opportunity in IoT consolidation. Privately held Kore announced on Tuesday that ABRY Partners, a private equity firm focused on communications, has acquired a majority stake in the company. That investment made the Raco acquisition possible, Kore said.

"Strategic acquisitions both in advanced connectivity and richer applications solutions are an important goal, as scale and global reach are of paramount importance to our large applications and enterprise customers," Kore CEO Alex Brisbourne said in a press release.

Kore Wireless works with mobile operators, solution providers and enterprises to build and operate M2M systems that take advantage of a variety of wireless networks. Its customers span industries including health care, utilities, fleet management and oil and gas.

RacoWireless sells software and services for deploying, operating and managing M2M systems. Earlier this year it introduced Omega DevCloud, a service designed to help developers write applications that use data from many different M2M devices.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsbusiness issuesNetworkingKore WirelessRacoWirelessJames Brehm & Associates

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?