Carrier focused smart car vendors Tantalum, Springworks combine in £14m deal
Carrier focused connected-car companies Tantalum and Springworks have combined in a deal worth around £14 million, bolstering their position in Europe and the US automotive and telecommunications markets.
The deal sees UK-based Tantalum, which counts Edmund Truell’s Disruptive Capital investment fund as its majority shareholder, purchase Sweden-based service provider Springworks.
Tantalum provides a cloud platform for connected vehicles, along with a range of aggregated car services. The deal follows on the heels of its recent launch across the US with AT&T and car gadgetry brand Harman, a subsidiary of Samsung. It also offers a Pay.car billing, payment and data management platform for connected vehicles.
Springworks is the brains behind the SPARK software-as-a-service system, a white-label services for mobile operators that turns any car into a ‘smart’ car, providing services including crash assistance, vehicle diagnostics, and roadside assistance management, among others.
Springworks has deals in Europe with Scandinavian telecoms operator Telia and Swiss service provider autoSense, which works with carrier Swisscom and car dealer AMAG.
Tantalum’s deal with AT&T and Harman is (confusingly) for a Springworks-style offer, under the ‘HARMAN Spark’ brand, which AT&T claims gives drivers of older cars a range of smart services more advanced even than with standard car models.
Tantalum, which counts Edmund Truell’s Disruptive Capital investment fund as its majority shareholder, said the deal makes the combined company “one of the largest connected car solution providers in the world”, with extended scope in Europe and the US. Their combined presence in these regions will contribute to partnerships with global telecommunications companies, automotive OEMs and dealerships, it said in a statement.
Ozgur Tohumcu, chief executive of Tantalum, said: “Springworks bring an even greater reach into European markets, which is an important addition to our recent deals in the USA, as we continue creating a comprehensive connected car marketplace.
“Customer demand and network capabilities have primed the industry for explosive growth in connected vehicles, services and data monetisation. Springworks bring both an existing customer base as well as significant experience and expertise applicable on the global stage.”
Erik Ramberg, chief executive and co-founder of Springworks, commented: “Our combined capabilities, customers, service providers and partners enables us to continue to drive innovation in the automotive space.
“Bringing together Tantalum’s strong payment solutions to our ecosystems of service providers is a great example where we become unique and attractive to service providers and cities on their way to Mobility-as-a-Service solutions.”