November 11, 2014
KORE Wireless is moving to strengthen its position in the Internet of Things (IoT) managed services space with the acquisition of fellow IoT MVNO RacoWireless.
The move comes just as private equity group ABRY Partners sinks an undisclosed sum into KORE Wireless Group Inc. to acquire a majority interest in the company.
The roll-up of KORE and RacoWireless is all about scale, combining two already large providers of IoT services, both of which have strong alliances with service providers globally. The combined company will provide services to more than 3 million end-users in 110 global markets. Together, KORE and RacoWireless deliver services on behalf of more than 1,500 corporate customers in automotive, healthcare, fleet tracking and other sectors.
"Scope and scale are critical. We're coming to the point where M2M and the Internet of Things are mainstream," RacoWireless President John Horn tells Light Reading. "We didn't want to take a step forward in this market -- we wanted to take a leap."
Horn says the two companies' combined relationships with service providers are a critical part of that growth. RacoWireless itself is a spin-off of T-Mobile US Inc. , and both companies have close ties to AT&T Inc. (NYSE: T) and many other network operators, he says. RacoWireless also has been working to foster development of the IoT application ecosystem. (See RacoWireless Opens App Store for the IoT and Raco Aims to Eliminate Need for IoT Standards.)
For all the insight into where service providers fit in the IoT, register to attend Light Reading's Carrier IoT: Making Money From Machines event in Atlanta on February 10, 2015.
Keith Robinson, senior strategist and consultant and head of M2M/IoT for Compass Intelligence, says managed service providers such as the expanded KORE will help carriers penetrate vertical markets with IoT services.
"Mobile carriers may have a lot of good core competency in selling mobile services, but don't have expertise in a lot of different vertical markets," he says. "This actually helps them expand -- it's an extension of their companies. [Carriers] are going to have to work with a lot of companies they're not accustomed to working with. Going alone is not going to cut it."
Horn of RacoWireless -- who will remain at KORE as EVP and chief strategy officer, while KORE CEO Alex Brisbourne will remain CEO -- says more acquisitions are forthcoming, as is a new identity for the combined company.
"The intent is to rebrand the entire thing as a new global brand," he says.
— Jason Meyers, Senior Editor, Gigabit Cities/IoT, Light Reading
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