Kore to list on NYSE following Cerberus merger

  • March 24, 2021
  • Steve Rogerson

IoT firm Kore Wireless and Cerberus Telecom are to merge and will go public with a New York Stock Exchange listing.

Powered by an IP portfolio and IoT platform, Kore delivers mission-critical IoT enterprise and CaaS services to more than 3600 customers worldwide. It manages over 12 million connected devices, serving a range of industries, with a focus on sectors that collectively represent over 80% of the IoT market.

Through this combination, Kore will be able to leverage Cerberus’ 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 and CaaS business,” said Romil Bahl, CEO 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.”

Tim Donahue, Cerberus CEO and former executive chairman of Sprint Nextel, added: “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 capitalises on the global expansion of 5G.”

And Tomer Yosef-Or, partner at Kore’s majority shareholder Abry Partners, said: “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.”

The transaction is expected to provide approximately $484m of gross cash proceeds to the combined company, assuming no redemptions by Cerberus shareholders, and includes a $225m pipe investment.

Abry Partners has agreed to roll 100% of its common equity into the combined company.

The transaction, which has been approved by the boards of directors of both companies, is expected to close in mid-2021. The transaction remains subject to approval by shareholders of both companies and the satisfaction or waiver of customary closing conditions.

Romil Bahl will continue to lead Kore as president and CEO following the completion of the transaction.

Founded in 1992, Cerberus is a specialist in alternative investing with approximately $50bn in assets across complementary credit, private equity and real estate strategies. It has a focus on technologies and telecommunication in critical IoT, edge computing, artificial intelligence, private wireless networks, network equipment, autonomy, aerospace and ecosystem development.