EnOcean has entered into a definitive business combination agreement with publicly traded special purpose acquisition company, Parabellum Acquisition Corp., which will result in EnOcean becoming a publicly listed company subject to the closing.
Upon closing of the transaction, the combined company will be named EnOcean Holdings and will be listed the NYSE and trade under the new ticker symbol “SIOT”, or Sustainable IoT.
EnOcean is an expert in energy harvesting based IoT devices for commercial buildings and smart spaces. It also has extensive OEM partnerships with over 300 customers and is a founding member of EnOcean Alliance, a non-profit international association of companies that enables and promotes interoperable ecosystems for smart homes, smart buildings and smart spaces, and has over 300 members.
Through a recently announced partnership with Aruba Networks, EnOcean has also developed an innovative cloud solution called IoTC, which represents EnOcean devices on the cloud by utilising existing infrastructure of Aruba’s access points. EnOcean’s IoTC thereby enables the rollout of maintenance-free IoT devices for offices without the need of creating any new infrastructure, including additional gateways or access points. The business combination is expected to provide EnOcean with growth capital to expand deployment of its innovative technology and provide capital for strategic acquisitions.
The business combination values EnOcean at an equity value of $120m. The combined company will receive approximately $146.5m in gross proceeds from Parabellum’s trust account, assuming no redemptions by Parabellum’s stockholders, and up to $40m in additional financing to be raised prior to the closing of the business combination. Following the closing, the combined company will continue to operate the business of EnOcean from its offices in Oberhaching, Germany.
“The accelerating drive towards more sustainable buildings by both real estate owners as well as tenants, compounded by sharply rising cost of energy, are creating a market for sustainable IoT solutions that drive down the usage of energy,” said Raoul Wijgergangs, CEO of EnOcean. “We believe EnOcean is strongly positioned to capitalise on these long-term trends and are seeking ways to accelerate its growth beyond organic developments. For that reason, EnOcean acquired the smart-server business from Renesas Electronics Corporation on October 1 2022, and is pursuing a strategy for additional acquisitions. We believe getting access to public markets through the business combination with Parabellum is a perfect path forward for EnOcean. This path creates a healthy balance sheet for EnOcean and continued access to public markets for strategic initiatives.”
Narbeh Derhacobian, CEO of Parabellum Acquisitions Corporation, added: “When we started our journey at Parabellum, we indicated to our investors that our ideal target company would be one that is focused on the accelerated pace of IoT transformation across several key verticals, has proprietary technologies, has an excellent management team, has a defensible business model, and more importantly, a proven track record in enabling smart, IoT-enabled spaces.
“We believe EnOcean meets all the criteria that we set out back in September 2021. Over the last several quarters, we have come to understand and appreciate the vision of the transformation that Raoul and his management team have set forth. We believe EnOcean is ready to benefit from a stronger balance sheet and execute on their vision of growth as a public company. The team at Parabellum is here to support this exciting journey for EnOcean.”
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