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Phunware Inc. (NASDAQ: PHUN) announced that it has acquired privately-held Lyte Technology Inc., a fast-growing provider of high-performance computer systems, and financed the closing consideration of $3.32 million with cash-on-hand and unsecured, non-dilutive debt. The Company also expects to report net revenues exceeding $5 million for the fourth quarter of fiscal 2021 in newly issued revenue guidance.
Founded in 2018, Lyte is a profitable, rapidly growing system integrator that specializes in marketing and distributing custom, high-end computer systems off-the-shelf with advanced graphic processing units for gaming, streaming, and cryptocurrency mining. Currently located in Illinois, Lyte employs more than 25 people and ships thousands of computer systems per quarter to a unique customer network that has largely grown through word of mouth. The company prides itself on delivering the highest quality machines to its customers using high-end components from manufacturers such as NVIDIA (NASDAQ: NVDA), Intel Corp. (NASDAQ: INTC), and Advanced Micro Devices Inc. (NASDAQ: AMD).
Lyte enables Phunware to enter the high-performance personal computer market. The HPC market is worth $32 billion and is expected to grow at a 20.4% CAGR over the next 5 years, according to an estimate from JPR. Lyte’s customers represent gamers, developers, content creators, and crypto enthusiasts who will support the adoption, scale, and infrastructure required for Phunware to deploy its decentralized data economy powered by PhunCoin and PhunToken.
“Pre-acquisition, Q3 organic net revenues are expected to exceed 50% quarter-over-quarter growth sequentially when formally announced in mid-November, so this accretive inorganic acquisition puts us in a great position to not only continue that organic momentum in Q4, but also leverage a brand new, strategic distribution network for our recently announced blockchain initiatives,” said Alan Knitowski, president, CEO, and co-founder of Phunware. “Software exists at the pleasure of hardware, so much like Amazon (NASDAQ: AMZN) invested in the resources necessary to deliver a global on-demand economy, Phunware is investing in the resources necessary to deliver a global decentralized data economy.”
“Since inception, our demand has always outpaced our supply, so I am excited to better resource and scale Lyte within an innovative public company that has a strategic focus on decentralizing data,” said Caleb Borgstrom, Founder, and CEO of Lyte Technology. “I expect Lyte to materially contribute to Phunware’s operational and financial success rolling forward, while delivering a worldwide distributed network of high-performance computing platforms to serve as decentralized oracles, validators, and nodes that efficiently bridge the gap between external data on the existing web and blockchain-based applications on mobile.”
With this move, Phunware moves closer to empowering consumers by giving them ownership of their data. The company’s blockchain ecosystem which is managed by PhunWallet on Apple iOS and Google Android, will allow people to monetize the data companies collect on them and decide when and to whom they sell it.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
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