Twilio is selling its IoT business unit to Kore, following a definitive signed agreement between the companies. Here’re ten things you need to know about Kore’s acquisition:
- An Expansion of KORE’s Portfolio: The acquisition of Twilio’s IoT business unit by KORE is a strategic move designed to bolster KORE’s portfolio in IoT solutions and services. This step will enhance their market presence and enable them to provide their customers with an integrated and comprehensive suite of IoT services.
- Acquisition Consideration: Twilio will receive 10 million shares of KORE’s common stock in return for its IoT business unit. This deal indicates an equity-based acquisition where Twilio will have a stake of about 11.5% in KORE’s issued and outstanding shares, creating a strategic alliance between the two companies.
- Powerful Connectivity Suite: This acquisition will bring a powerful connectivity suite to the market, including KORE’s OmniSIM and Twilio’s Super SIM, strengthening the overall product offering and delivering superior eSIM technologies to customers.
- The One-Stop-Shop Approach: With this acquisition, KORE intends to become a one-stop shop for building, deploying, managing, and scaling IoT operations. Leveraging both companies’ award-winning technologies and world-class facilities, they aim to simplify and expedite the IoT lifecycle for their clients.
- A Faster Time to Market: KORE will leverage Twilio’s digital experience, the collective IoT experience of both companies, and the global, 24/7 customer support to accelerate the market for their IoT solutions.
- Bringing Talent and Customers: Twilio’s IoT unit is not just a technology portfolio; it also includes a talented team and a solid customer base. The acquisition will integrate these assets into KORE’s operations, benefiting from their established relationships and technical expertise.
- Realizing the IoT Potential: Both KORE and Twilio recognize the enormous potential of IoT in various sectors. With this acquisition, KORE aims to advance the Fourth Industrial Revolution, support remote patient monitoring, optimize agriculture, and support sustainability, among other impactful applications of IoT.
- The Vision of an IoT Hyperscaler: This acquisition aims to create what KORE refers to as an ‘IoT Hyperscaler’ – the first of its kind in the world. This concept represents an entity that can handle the rapid, massive scale required for global IoT solutions and services.
- Twilio’s Continued Involvement: Although Twilio is selling its IoT unit, this deal allows Twilio to maintain a substantial stake in the IoT space. Twilio will remain invested in IoT’s future through its 11.5% share in KORE.
- Future Growth Strategy: Lastly, this acquisition is a significant step in KORE’s growth strategy. KORE is demonstrating a willingness to invest heavily in its mission to become a leading growth company in the IoT sector. Incorporating Twilio’s digital experience and developer community into its operations will contribute significantly to its future growth and success.
