Machine-to-machine provider Kore Wireless Group, fueled by a majority interest purchase by investment firm Abry Partners, announced an all-cash acquisition of M2M and “Internet of Things” services company Raco Wireless.
Kore focuses on machine-to-machine connectivity using GSM, HSPA, CDMA2000 1xEV-DO, LTE and satellite services to industry customers that include health care, utility, enterprise IT, fleet management and financial transaction processing.
Raco provides end-to-end wireless solutions in the M2M space.
The new combined company will operate in 110 global markets to provide services to approximately 1,500 customers. Subject to regulatory approvals, the transaction is expected to close by the end of 2014.
Kore CEO Alex Brisbourne said the partnership will allow the company “to rapidly develop the scale demanded by global customers in what has so far been a fragmented market.”
He said M2M tech will allow customers to become “more efficient, innovative and, in some cases, disruptive business models going forward.”
The M2M market, which allows machines to share data and communicate, is forecasted to become a more than $1 trillion annual industry in less than a decade, according to Machina Research.
M2M is one segment of IoT, which aims to imbue formerly unwired devices with the ability to transmit data over the Internet. For instance, a Web-equipped refrigerator could let the owner know what to pick up from the store by way of a mobile app.
“This acquisition is a great fit between two companies that have been pioneers in this space,” said John Horn, president of Raco and soon to be EVP and chief strategy officer at Kore. “This is a unique opportunity that will redefine the IoT/M2M industry, and create a company that has the right scale and focus to shape the course of the Internet of Things.”
