Swedish operator Netmore has bought the IoT network business from Talkpool for SEK7.5m to ensure national coverage for its customers.

Netmore will use the Nordic IoT Networks (NIoT) business to complete a nationwide IoT network that enables large-scale rollout of services related to moisture, water damage and radon for customers in in the insurance and real-estate industry.

Talkpool started NIoT to ensure LoRaWan coverage and a functioning market in Sweden for its IoT services and sensors because no network operator then fulfilled that role. Now Netmore has taken on the role of national operator and thus Talkpool felt it was natural to sell the network to Netmore and contribute to a consolidation.

The deal is part of the streamlining of Talkpool’s operations with a focus on services and sensors for the insurance and real-estate industry, including metering, environmental certification and energy efficiency. The collaboration also provides increased opportunities to sell Talkpool’s sensors for CO₂-, particle- and radon measurement to other suppliers in Sweden and internationally.

“The deal is a win-win for both Netmore and Talkpool, and we see great potential in continued cooperation and further sales to Netmore’s customers,” said Stefan Lindgren, CEO of Talkpool.

A nationwide network enables Talkpool to implement on a large scale its services related to moisture, water damage and radon developed in collaboration with the insurance industry, among policyholders throughout Sweden.

“We look forward to working with Talkpool as a leading provider within IoT and see great potential in Talkpool’s solutions,” said Ove Anebygd, CEO of Netmore. “The deal expands Netmore’s LoRaWan coverage and enables reliable and large-scale IoT through the rollout of qualitative IoT infrastructure throughout the country.”

In the current network, Talkpool is conducting several digitisation projects with major Swedish companies. Access to Netmore’s expanded LoRaWan will have a direct positive effect on on-going and future collaborations with, for example, real-estate, construction and insurance companies, to which sensors are offered and which enable efficiency through digitisation.

The services that Talkpool will develop in the future will also use Netmore’s network infrastructure, which should increase the recurring revenue for Netmore.

The transaction is valued at SEK7.5m and is settled in two parts. An initial purchase price of SEK3.5m pertains to installed and stocked gateways, accounts receivable and cash. The amount is paid with shares in Netmore Group at a valuation that corresponds to the volume-weighted average price over the past ten trading days, which is calculated at approximately SEK1.23.

This will be followed by SEK4m in additional purchase consideration in the form of an interest-free reverse. The additional purchase price shall be paid three years after the effective date and can be converted into newly issued shares at a fixed issue price of SEK3.0 per share.

The transaction will take place next month and is conditional on consent to significant agreements.