KORE acquires RacoWireless
Both KORE and Raco specialize in machine-to-machine (M2M) connectivity for applications like fleet telematics and asset tracking over cellular and satellite networks. Together, they operate in more than 100 global markets, serving 1,500 customer firms with a total of 3 million subscribers.
Raco president John Horn, who will become executive vice president and chief strategy officer of the combined entity, said in a statement that the goal of the merger was to “create a company that has the right scale and focus to shape the course of the Internet of Things.” The two service providers already have strong alliances with service providers globally (Raco was T-Mobile's US M2M division before it was spun off in 2012.) and this reach combined with a recent focus on new application layer services for their customers will be a formidable combination.
The deal comes alongside news that private equity investment firm ABRY Partners has purchased a majority stake in KORE. Buying Raco is the first step on a growth-focused path enabled by the new influx of capital.