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.


Read More

Source: Reuters

Reporting by Sohini Podder in Bengaluru; Editing by Shinjini Ganguli