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Posted October 07 , 2021

 

IoT connectivity and solutions company Kore Wireless has begun trading on the New York Stock Exchange, after completing its combination with Cerberus Telecom Acquisition Corp. (CATC).

Kore Wireless President and CEO Romil Bahl sees a huge decade ahead for IoT; the company expects to see the market grow from about 12 billion IoT devices at the end of 2020 to 75 billion by 2030. He says that Kore’s transition to public company will reduce its debt, open up potential acquisitions that add to its capabilities, and enable it to grow faster.

“I think it now positions us to work this next decade of IoT as a public company and hopefully go from strength to strength,” said Bahl.

{mprestriction ids="1,4,9"}Bahl has headed up a transformation plan at Kore over the past few years, and the possibility of going public has been part of company discussions for some time, he said. Kore counts a number of factors in its favor as a public company: A base of about 3,600 customers globally, a large base of recurring revenues and its history as a longtime player in IoT with an established set of carrier relationships.

“From the beginning of my tenure here, I have personally believed that becoming a public company was an important next step in the evolution of this great company and team – a step that will allow us to continue our goal of leading the industry as we enter the ‘decade of IoT,'” Bahl said. “The natural attributes of our business including the growth potential given the massive market tailwinds over the next decade, our revenue visibility, and recurring revenue, make for excellent public-company characteristics.”

Ultimately, Kore opted to go public by combining with CTAC, a so-called “blank check” company, or special purpose acquisition company (SPAC) formed by an affiliate of Cerberus Capital Management and headed up by former Sprint Nextel CEO Tim Donahue. Donahue has now become the chairman of Kore’s board of directors. Kore was looking to raise around $400 million through the transaction, mostly to reduce its debt, and achieved more than that, Bahl said; according to a company release, Kore will have more than $100 million in post-merger liquidity available to it.

 

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