For Cubic, taking payments is a military operation. The transportation, defence and payments specialists power fare collections for some of the biggest transport infrastructure networks in the world. Now it’s looking to bring the internet to the battlefield.
The company has bought the Virginia-based DTech Labs for a whopping $114.5m in a bid to improve its mobile broadband operation for militaries. This side of the business involves selling $50m worth of secure communications devices to customers in the defence business, which use them to manage data transmission between drones and ground command centres, among other forms of communication. Cubic now wants to focus on quadrupling the value of this business.
“What this acquisition does is it adds networking to our secure communications capability,” incoming Chief Executive Bradley Feldmann told UT Santiago. “It is almost like bringing the Internet to the battlefield, whether it’s in the air or on the ground.”
So, will this mark a shift in focus from payment technology and transport logistics to all-out defence? For Feldman, who gained his undergraduate degree from the United States Air Force Academy before landing high profile roles at a string of corporations that specialise in national security and defence surveillance, it would seem to be a natural fit.
What’s more, he has expressed an interest in buying up companies in relevant fields to speed up the transition.
“I anticipate we will be doing further acquisitions,” he said. “We want to look for capability, but we don’t want to pay too much, either.”
Three years on from being acquired by PayPal, Braintree, a company which allows merchants to process a range of different payments, has revealed the number of its payment transactions has increased by 25 times.
There’s more signs of consolidation in the crowded European payments space with news that Stockholm-based iZettle is buying a company called intelligentpos.
MasterCard has bought Vocalink for £700m ($920m) in a deal that has been rumoured for months.
Oh, what we wouldn't do to know the future! Like Biff and the Almanac in Back to the Future, all we need is a guide. Luckily the team over at Pivotl is on hand to give us one for the future of fintech.