The outcomes-as-a-service provider has acquired Cimcon Lighting whose smart pole infrastructure is used to transform existing streetlights into smart city assets.
Outcomes-as-a-service smart city technology provider Quantela has acquired Cimcon Lighting.
The acquisition provides Quantela with access to Cimcon’s streetlight pole infrastructure, which is used to transform existing streetlight poles into smart city assets, capable of running a range of applications.
Cimcon has more than 200 customers in 30 countries with 1.2 million streetlight controllers deployed. It is based in Burlington, Massachusetts, which will serve as Quantela’s new US headquarters.
Quantela recently raised $40 million in growth capital from Digital Alpha, a digital infrastructure investment firm. The two companies claim to have pioneered an outcomes-as-a-service (OaaS) approach to smart cities and urban infrastructure, leveraging customer outcomes such as revenue generation and expense savings to finance the capital investment for its solutions.
The OaaS approach enables Quantela to share responsibility with customers for achieving their social, economic, and environmental sustainability goals which will deliver greater value in the form of tangible outcomes that generate revenues or create new efficiencies.
Outcomes are powered by real-time data and predictive analytics from applications like digital advertising, traffic management, smart parking, public wi-fi and waste management to help communities achieve their goals.
“The acquisition of Cimcon Lighting gives Quantela the opportunity to access the streetlight pole infrastructure used to deploy Cimcon Lighting controllers,” said Sridhar Gadhi, Quantela’s founder and executive chairman.
“More importantly, the costs-savings realised through the deployment of these controllers improves the commercial viability of the digitisation business case, and therefore, improves Quantela’s ability to deliver better outcomes to customers.
“The acquisition will provide existing and future customers with the security of a larger company, with more economies of scale, larger and more diversified talent, plus even more valuable outcomes.”
“Costs-savings realised through the deployment of these controllers improves the commercial viability of the digitisation business case”
The OaaS model has been implemented in the US city of Erie in Pennsylvania, where city leaders leveraged an initial investment from Quantela’s investment partner Digital Alpha to secure a matching grant that doubled the budget for the project to set up free public wifi across eight Federal Opportunity Zones.
Erie will provide free public wifi to its citizens while implementing enhanced law enforcement surveillance, smart traffic control, smart parking, and energy-efficient street lighting.
Quantela’s latest OaaS deployment is in the Indian state of Kerala. The $20m project will be the first of its kind in India, which aims to enable the state to reduce road fatalities by improving traffic rules enforcement.
Quantela further supports communities through outcomes-based financing, a funding vehicle that helps communities invest in projects through cost-savings and revenue generation from the implementation of smart technologies.