Herbert Smith Freehills Advised SoftBank on Strategic Investment in Cubic Telecom

Herbert Smith Freehills Advised SoftBank on Strategic Investment in Cubic Telecom

Leading law firm Herbert Smith Freehills provided legal counsel to Japan's SoftBank Corp. on its €473 million ($514 million) investment in Cubic Telecom, a Dublin-headquartered company, resulting in a 51 per cent equity acquisition.

SoftBank has established a strategic global partnership with Cubic Telecom, a leading global provider of connectivity solutions for vehicles, to pioneer the future of software-defined connected vehicles and other high-value Internet-of-Things (IoT) assets.

"Connected vehicles and IoT devices are areas of huge interest for many companies," said corporate partner Joseph Fisher. "Our Tokyo office's expertise in advising Japanese companies on outbound investments enabled us to support SoftBank on this and its recent investment into IoT service provider 1NCE."

A report by McKinsey & Company projects that 95 per cent of new vehicle sales worldwide will be connected by 2030, unlocking an estimated $400 billion in annual value for the ecosystem. Cubic Telecom is strategically positioned to take a leading role in this rapidly expanding market.

London partner and Global Head of M&A Gavin Davies added: "SoftBank is a longstanding client of the firm and we're delighted to work on this exciting deal, creating a partnership that will provide cutting-edge connectivity solutions for smart vehicles."

Completion of the SoftBank investment is contingent upon obtaining regulatory approvals in various jurisdictions and fulfilling other customary closing conditions. The transaction is anticipated to close in the first half of 2024.

A team led by Joseph Fisher, partnered by Tokyo’s Graeme Preston and London’s Gavin Davies, advised SoftBank on the transaction. Regulatory and competition advice was provided by Hong Kong-based partner Adelaide Luke.

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