Global IoT provider KORE to merge with Cerberus Telecom Acquisition Corp.




Global IoT provider KORE to merge with Cerberus Telecom Acquisition Corp.

Global IoT provider KORE to merge with Cerberus Telecom Acquisition Corp.

  • Transaction positions KORE to further its global leadership position in mission-critical Internet of Things (IoT) solutions and global connectivity, leveraging key technology trends such as 5G, eSIM and Low-Power Wide-Area.
  • Consumers and businesses are driving demand for connected devices, and as we hurtle towards an exponentially more connected planet, KORE is uniquely positioned to enable its customers to rapidly adopt and securely scale IoT solutions.
  • Proceeds include an oversubscribed and upsized $225 million PIPE, anchored by Koch Strategic Platforms, LLC, a subsidiary of Koch Industries and part of the Koch Investment Group, and other top-tier investors including funds and accounts managed by BlackRock.
  • Transaction reflects pro-forma enterprise value of the combined company of approximately $1.014 billion and will provide approximately $484 million of gross cash proceeds at the $10.00 per share PIPE price.
  • Existing majority shareholder Abry Partners has agreed to roll 100% of its common equity into the combined company.

KORE Wireless Group, Inc., a global leader in Internet of Things solutions and worldwide Connectivity-as-a-Service (“CaaS”), and Cerberus Telecom Acquisition Corp., a special purpose acquisition company affiliated with Cerberus Capital Management, L.P. (“Cerberus”), announced today that they have entered into a definitive merger agreement.

Upon completion of the transaction, the combined company expects to be listed on the New York Stock Exchange under the ticker symbol “KORE”.

Powered by a strong IP portfolio and a differentiated IoT platform, KORE delivers mission-critical IoT enterprise solutions and CaaS services to more than 3,600 customers worldwide, including Fortune 500 enterprises. The Company manages over 12 million connected devices, serving a range of industries, with an increasing focus on key sectors that collectively represent over 80% of the IoT market. With the global IoT market forecasted to grow to nearly $1 trillion by 2025, KORE believes it is well-positioned to expand organically and through accretive acquisitions.

KORE is led by a world-class management team with extensive public company leadership experience. Through this strategic combination, KORE will be able to leverage CTAC’s executives and advisor network with significant operating expertise in the information and communications technology sector, specifically with companies participating in the 5G revolution.

“Today’s announcement is a significant step forward for KORE and a testament to our market-leading IoT Solutions and CaaS business,” said Romil Bahl, President and Chief Executive Officer of KORE.

“Over the past several years, we have been expanding KORE’s capabilities to help our customers extend their digital transformations to the edge, which is the very promise of IoT. As the 5G revolution accelerates globally, we believe we are well-positioned to be a critical enabler in helping enterprises transform their businesses with the power of IoT solutions.”

Tim Donahue, Chief Executive Officer of CTAC and former Executive Chairman of Sprint Nextel, commented:
“This is a rare opportunity to partner with a proven business supported by a strong and diversified customer base. KORE is playing a critical role in the rapidly growing IoT market with meaningful organic and inorganic opportunities. We look forward to working closely with Romil and his talented team to provide strategic and operational counsel, as well as industry relationships, as KORE capitalizes on the global expansion of 5G.”

Tomer Yosef-Or, Partner at Abry Partners, commented:
“We are proud to have reached this next milestone in our partnership with KORE. Since our initial investment, the team has done an incredible job serving its customers by anticipating the future needs and complexity of a more connected world.”

“We are excited to participate in KORE’s accelerating growth as a public company and believe this milestone provides for incremental resources to better serve KORE’s expanding customer base.”

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Original article: Global IoT provider KORE to merge with Cerberus Telecom Acquisition Corp.
Author: IoT.Business.News