M2M MVNO RACO Wireless has completed the acquisition of location-based services specialist Position Logic in a move aimed at improving its managed services offer to M2M customers.
Position Logic’s (Naples, FL, USA) technology allows enterprises to track and manage their assets through a web-based platform and the company claims it can integrate virtually any signaling device into its software to provide real-time monitoring across the globe.
Position Logic’s 40 employees will continue to operate out of offices in Florida and the Dominican Republic, with Felix Lluberes, the chief executive, and Hong Long, the chief technology officer, joining RACO’s (Cincinnati, OH, USA) leadership team.
The company will continue to offer products through “white-label” relationships with value-added resellers, but these will also be integrated with RACO’s tools to provide customers with a more complete offering.
“In joining RACO Wireless, we now have the scale to go much further through the integration of technology, expertise and resources,” said Lluberes.
Financial terms of the deal were not disclosed.
RACO Wireless had made clear its acquisition intentions last October, when private-equity group Inverness Graham Investments took a majority stake in the business.
During a conversation with M2M Zone at the CTIA Wireless Show, held in Las Vegas in May, John Horn, RACO’s chief executive, said he was on the verge of announcing a takeover that would be a “significant game-changer” and allow RACO to provide “considerably more services” than before.
“By bringing the application and network layers together, we not only shake up the industry, but we create value for our partners and their customers by providing a more complete solution,” said Horn in announcing the takeover. “Some partners only require connectivity while others an entire solution, some groups need help with certain components to enhance their offering, and we are there to help where needed.”
Kathyrn Weldon, an analyst with Current Analysis, says the takeover will allow RACO to move up the value chain beyond network connectivity and service enablement.
“RACO can now help partners quickly build solutions to track and monitor cargo, fleets, people, patients, construction assets and effectively empower dispatch and geofencing operations and more across the M2M ecosystem,” she said.
MVNOs like RACO are under pressure to improve their managed services offerings, with network operators like AT&T (Dallas, TX, USA) and Verizon Wireless (New York City, NY, USA) growing increasingly interested in the M2M area as their traditional business activities show signs of commoditization.