St. Helier, Jersey – June 24th 2021. JT is delighted to confirm it has reached agreement to sell a majority stake in its Internet of Things (IoT) division to the family backed private equity investor Perwyn. The new business will remain headquartered in Jersey. JT were advised exclusively on this deal by Arma Partners.
This division was created as part of JT’s international expansion drive in 2014 and has doubled in size every year for the last 3 years. It provides device connectivity services to customers around the world. There are almost 10 million JT SIMs in active use today. The sale has been timed to maximise the excellent growth potential of this successful business by securing substantial investment from a new owner who specialises in providing risk capital to rapidly growing technology businesses. JT will continue to benefit from this growth by supplying services to the new company and retaining a minority stake in it.
Phil Male, JT’s Chairman said: “I am immensely proud of the hard work, talent and commitment which the JT team have shown to get our IoT business to this point. Together we have grown this business from inception into an entity now worthy of a sale at this scale. This sale not only shows the vast potential and value of Jersey’s digital sector, but also demonstrates that within Jersey we have both the human talent and the funding to enable and build globally successful digital businesses.
Now is the right time for JT to sell the majority of this business, in order to further turbo-charge that success. Whilst retaining a minority stake and becoming a supplier to Jersey’s biggest technology business, we believe that in Perwyn we have a new owner for the business with the vision and risk appetite to fund and grow this young, dynamic and growing global Jersey business.”
Chief Minister, Senator John Le Fondré, said:
“This is extraordinarily good news for Jersey and a clear marker of just what can be achieved in the digital economy. We welcome this significant inward investment to the Island, which will lead to growth and exciting employment opportunities for Islanders.
“The agreement clearly shows that Jersey is gaining a global reputation as an incubator of successful digital businesses, and I am determined that this will represent the start of an even more exciting time for Jersey’s digital sector.”
Andrew Wynn, Founder and Managing Partner of Perwyn, added:
“We are extremely pleased to have secured the purchase of JT’s IoT business. We have been watching JT’s development in this space for some time with great interest and are impressed by both the speed and scale of their success and growth in this area. They are now one of the most attractive players in this global market. The process of dealing with JT and the island of Jersey during this transaction has been collaborative and productive. We are confident this relationship will bring benefits to Jersey, as well as augmenting the island’s future attractiveness as an incubator for leading-edge innovative businesses. We look forward to working with the JT team to complete the transaction, which is one of important size and scale for us.”
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• About JT
From its origins in Jersey in 1888, JT is an innovative global telecommunications firm, employing more than 600 people in 7 global locations. Our clear purpose is to connect our Channel Island customers to their sustainable future. To do that, we form long-standing partnerships with leading communications businesses to deliver the products and services expected from a full-service, world-class communications provider. Our fast-growing International business, also includes successful fraud protection and bulk messaging services.
Owned by the people of Jersey, JT has completed a socially inclusive project to install a full-fibre broadband network in Jersey, making the island the first jurisdiction in the world to have 100% full-fibre connectivity to all premises, with the second fastest broadband speeds in the world. Throughout the Covid crisis JT continues to provide all of its Channel Island Fibre customers with a 1 Gbit/s synchronous service, at no extra cost. Our Channel Island customers also enjoy an award-winning 4G mobile network, with 5G trials currently underway.
www.jtglobal.com @JTbusiness JT Group Limited
• About JT IOT
JT has built a reputation as a supplier of global “Internet of Things” connectivity – applying its telco assets to provide cellular connectivity and remote management of close to 10 million SIMS and connected devices across the world.
JT IoT has demonstrated consistent strong revenue growth since its launch in 2014. Supported by a team of 70 people and over 500+ roaming agreements with global operators, JT IoT offers multiple network access through a single SIM – providing robust, secure and “always on” connectivity. Its in-house developed Nomad Connectivity Management Platform (CMP) provides a differentiated experience through real-time monitoring and control of large SIM estates.
Recognising the massive potential of this nascent technology JT launched its first “embedded-SIM” (eSIM) proposition in 2020. This product eliminates the “lock-in” effects of traditional SIMs by enabling a change of network providers over the air, allowing remote provisioning and billing of operator profiles, enhancing its credentials as the most advanced CMP on the market today.
IoT is now a truly global phenomenon, with applications across the healthcare, mobility, automotive and infrastructure sectors, to name but a few – many now supported by JT IoT solutions.
• About Perwyn
Founded in 2013, Perwyn is a family backed, international private and growth equity investor. Perwyn works closely with investee companies applying strategic and operational expertise in addition to providing capital. Perwyn is free from the usual private equity funding cycles, focusing above all on our investments rather than fund raising. We approach investment with an evergreen model and believe in genuine partnership with management teams, seeking to facilitate long term growth and development.
There are two main focuses of our business. Perwyn Private Equity is an active lead investor, seeking buyout opportunities in established, growing, cash generative market leaders headquartered in the UK or Western Europe where it can make a material impact on growth and profitability. We invest in businesses with an EV of £/€50-300m, seeking partnership investment support for growth initiatives or transition. Perwyn Growth Capital invests in growing businesses across the same markets, with a passion for backing entrepreneurs and founders on their winning strategy. We seek primarily minority equity investments of £/€5m-50m to help accelerate growth.
• About Arma Partners
Arma Partners provides independent corporate finance advice to companies and investors active in the global Digital Economy. They act as trusted advisors to Digital Economy leaders throughout the entire corporate lifecycle, from raising private capital for fast-growing disrupters and founder-led businesses to orchestrating complex cross-border M&A deals for private equity investors and global large-cap public companies. Founded in 2003, Arma today is one of the world’s largest dedicated technology advisors.