Tern (AIM:TERN) said its wholly-owned portfolio company, Wyld Networks Limited ("Wyld"), has been awarded an initial Purchase Order extending its existing cooperation agreement with one of the largest global satellite operators.
Wyld has won a £0.112m initial purchase order to develop and deliver a small number of proprietary-designed Low Power Wide Area Network ("LPWAN") Internet of Things ("IoT") modems to be functionally tested with a pre-commercial low earth orbiting ("LEO") satellite.
Tern, the investment firm specialising in IoT, believes that following successful testing, a full deployment of this technology with a LEO satellite constellation could follow. As a result, the Board of Tern believes the order represents ‘a significant strategic milestone’ for Wyld.
It said the order underpins Wyld's growing reputation as a leader in LPWAN connectivity solutions for the IoT within ‘a rapidly growing market’ where satellite IoT is anticipated to connect underserved areas in agriculture, transportation and industrial verticals.
Shares in Tern were trading 11.20% higher this morning at 6.95p, following the news of the initial purchase order.
According to ABI Research, new satellite networks will enable 24 million IoT connections and is forecast to provide seamless global connectivity by 2024. Tern believes the purchase order has the potential to open this “significant and rapidly growing market” to Wyld.
"Wyld's existing partnership with one of the world's largest global satellite businesses and this subsequent initial purchase order provide strong validation of Wyld's technical expertise just 18 months since its business was refocused,” said Al Sisto, CEO of Tern.
He added, “The work to be accomplished under the purchase order is to ensure the functionality of the direct sensor to satellite communications capabilities using Wyld's LPWAN software stack and modem module, which is designed to enable global satellite and IoT device communications.”
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