December 2017

CHSH advises red-stars and MAVOCO on a large round of investment

CHSH Cerha Hempel Spiegelfeld Hlawati has advised data AG ("red-stars") on the expansion of its M2M telecoms segment. To achieve this goal, red-stars acquired a 50% stake in Freeeway GmbH ("Freeeway"). Machine & Voice Communication GmbH ("MAVOCO") also performed a capital increase when KLK Holding Ltd. became a new investor. Holding 50% of the shares in the company, red-stars remains MAVOCO's majority shareholder.

Both transactions concerned issues relating to corporate and IP law and both were completed in December 2017. CHSH provided comprehensive advice to red-stars on structuring the investment, both contractually and from a regulatory perspective.

MAVOCO is the operator and manufacturer of an IoT connectivity cloud which it makes available to network operators, MVNOs, resellers and corporate customers worldwide. The MAVOCloud brings together a number of communications service providers with businesses such as utility companies, device and equipment manufacturers or companies from the industrial sector. All of the parties involved in an IoT value chain benefit greatly from the access they have to a global connectivity portfolio which makes unified management and billing software available to them wherever they are in the world.

Freeeway is an M2M communications service provider (operating both as a "MVNO" and a "MVNE") that specialises in servicing the needs of clients in the telematics, telemetry and logistics industries. The business combines telecommunications know-how with a huge wealth of experience of all road and railway transportation.

Freeeway offers local, regional and global M2M connectivity solutions based on its MAVOCloud service. The wide connectivity portfolio of Freeeway offers an optimum technical and commercial solution for all requirements. data AG and Machine & Voice Communication GmbH were advised by the CHSH Venture Capital Team, consisting of Mag. Raphaela Zachbauer (attorney) and Mag. Nadine Leitner (senior associate).