KORE Wireless Group Inc has agreed to go public through a merger with a blank-check firm backed by private equity company Cerberus Capital Management, in a deal that values the combined entity at a pro-forma enterprise value of $1.01 billion. KORE said on Friday the deal with Cerberus Telecom Acquisition Corp will fetch the merged company about $484 million in gross cash proceeds.
The payment will include $225 million private investment led by Koch Strategic Platforms LLC and other top-tier investors, such as funds and accounts managed by BlackRock Inc.
Founded in 2003, KORE is a provider of IoT, or Internet of Things solutions and connectivity-as-a-Service (Caas). CTAC, a so-called special purpose acquisition company, or SPAC, raised $250 million through an initial public offering last year.
SPACs are shell companies that raise funds to acquire a private entity with the aim of taking it public, allowing such companies to eschew the hassles associated with a traditional IPOs.
Reporting by Sohini Podder in Bengaluru; Editing by Shinjini Ganguli
Can't stop reading? This and all news articles are property of their creators, many are not owned or provided by Private Equity Insider. As an event organizer and community platform, we curate content from reliable sources for your suggested reading, and advise you to read the full articles from the referenced authors and sources.