The acquisition is expected to be completed this month.
Tokyo-based Soracom was founded in 2014. It has built an IoT platform that it claims enables better data communications.
The startup serves about 7,000 companies, of which over 800 companies are in Europe and the US where it launched its services last year. This acquisition will allow KDDI to access Soracom’s global customer base.
KDDI has been forced to tap into the IoT sphere after it has faced a fiercer competition from low-cost rivals. In February, it acquired a cloud service developer and teamed up with Accenture to set up a data analysis firm.
Nikkei Japan cited that KDDI has allocated around 500 billion yen for mergers and acquisitions, including IoT firms, over three years starting from fiscal 2016.